Xinjiang: Cotton Target Price Reform Policy Makes Cotton Farmers Mixed

Xinjiang cotton target price reform policy has been implemented since last year, and cotton prices have been unstable. This has caused a lot of worries among the cotton farmers. Increasing the cost per ton has made the cotton processing enterprises that are already losing money even worse.

In April 7th, from the national development and Reform Commission website, the country continued in 2015. Implementation of cotton target price reform in Xinjiang 。 Taking into account factors such as cotton production cost and income, market supply and demand, the State Development and Reform Commission issued the Xinjiang cotton target price level of 19100 yuan per ton in 2015, down from 700 yuan last year.

In 2013, Xinjiang was above scale. Textile enterprises More than half of the losses occurred, and the root cause of losses is the price of raw materials at home and abroad. Last year, driven by the Cotton Subsidy Policy and Xinjiang's development of the textile and garment industry to promote employment, Xinjiang's textile industry realized turning losses into profits. However, the acquisition and processing enterprises of cotton are still facing difficulties in selling cotton and storing large stocks.

Teng Minli, President of Akesu Cotton Association, told reporters: in 2015, cotton processing and purchasing enterprises of Akesu cotton association are now facing heavy pressure. First, the inventory is relatively large. Two, cotton sales are rather difficult now. Do not know how the future sales, this is the market unpredictable. Three, the price of cotton is still on the downside, and there is no sign of recovery. In addition, the loan of the Agricultural Development Bank in August is near. Companies that are lending to credit cooperatives are facing a pressure to repay their loans these days.

April 16, starting last year in Xinjiang Cotton target price The implementation of the reform policy and the abolition of the previous temporary purchase and storage policy will cause the cotton purchase price to be determined by the market and the cotton price is unstable. Osman Adi, a cotton grower in the village of sekztk village in dlang Township, Awati, planted 25 mu of long staple cotton last year. The cotton price has dropped considerably compared with the previous years. The price of cotton is converted to seed cotton price at 19800 yuan per ton, about 8.8 yuan per kilogram. Although the cotton planted by him is not at a loss, it is lower than the price, with subsidies as a guarantee, but the profit is not great.

Osman Adi, a cotton grower in the village of zaziz, tuluxiang Township, Awati County, said, "I planted 25 mu of cotton last year, and sold 3.5 tons of cotton, only to sell 28000 yuan, and gave the gardeners a kilogram of 3 yuan, so I planted cotton at a loss. I planted 20 mu of cotton this year, and the wheat was planted in 5 acres. The state gave me a subsidy of 5500 yuan, and then planted cotton this year. Last year's cotton made us lose money. We hope that the cotton price will be raised this year, and our cotton can sell for about 11 yuan, so that we can get more income from cotton.

Similarly, for the implementation of the cotton direct subsidy policy, the planting area and seed cotton sale volume are combined. Among them, 60% is subsidized by cotton planting area and 40% is subsidized by actual sales volume, which is also difficult for cotton farmers and contracted farmers to accept.

Wang Zhenghua, a cotton grower in the village of zaziz, tuluxiang Township, Awati County, said: "we planted cotton last year, and we couldn't make money all the year round. The main reason is that cotton prices have fallen, as in the past few years. It can earn eighty thousand or ninety thousand yuan in the previous 120 years. Last year, I planted 120 mu of land, and basically did not earn any money on my own. Last year, I started to pay a small amount of labor and bring production data. I lost more than 40 thousand yuan, and now I am a bit worried about the species. I will make less contract this year, and contract 100 acres, which is to see how this year (cotton prices) are."

In April 7, 2015, the national development and Reform Commission released the target price level of cotton in Xinjiang in April 7, 2015, which was 19100 yuan per ton, less than 700 yuan last year. After the news was released, cotton growers and cotton enterprises in Wensu county changed their concepts and found a way out.

Yu Sufu Oman is a cotton expert in the Mengaiti village of ajor, Wensu county. The cotton in his family has been the best in the village all the year round, and the cotton income is very good. In the first two days, nearly 50 mu of cotton had been sown in his home. Today when he saw the news that the country continued to lower the cotton target price in the mobile phone newspaper, Yu Su Fu Oman felt melancholy.

"I heard that cotton prices have dropped this year, and this is not good news for me, so I plan to reduce cotton planting area next year, and grow vegetables and other crops," said Oman, a cotton farmer in the village of Mengaiti.

And for the cotton that has been planted this year, Oman said that it can only manage well, hoping to raise the output of single unit and strive for more income.

Xinjiang Jinfeng yuan seed industry Limited by Share Ltd is a leading cotton seed enterprise in Akesu. All cotton seeds in Wensu county are provided by the company. In previous years, the number of cotton seeds sold in Jinfeng yuan seed industry was over 4000 tons, and this year, the company sold less than 3000 tons of cotton seed. The direct reason is that the cotton planting area of Wensu county has declined this year, and some cotton farmers are still hesitant to wait and see.

For the downstream cotton mills, previously thought that the state did not interfere with the price trend, it could go directly to the cotton producing area to purchase cotton raw materials according to the demand of enterprises. It did not think that it would come out of a "warehousing inspection" policy, and the cotton trade had a lot of variables. This measure will not only delay the acquisition time of the new cotton, but also increase the cost by 300-400 yuan per ton. This year, if the production of cotton bags is processed in the public inspection and processing plants, the first step should be sent to the supervised warehouses. Because the processing plants are concentrated in the same time period, this will inevitably result in a certain period of time. The cotton processing plants have to queue up for storage, and the processing plant will be delayed for a day. After the second step is put into storage, the public inspection can only begin. The test results will take at least 8 days. The enterprises already in the warehouse will also face the problem of queuing inspection. The third step, after the inspection is completed, the group will be approved according to the test results, but in the warehouse group, it is bound to require a lot of manpower and material resources in the warehouse, and there will be a queue phenomenon. The market determines that cotton prices are bound to delay spanactions, and many enterprises are complaining. A manager of an enterprise in Akesu said: the policy should cater to the market. All the processing enterprises on the Internet have invested a lot of funds and equipment. The effect has been very good. The increase in the cost per ton makes the cotton processing enterprises that are already losing money even worse.