Analysis Of The Role Of Cotton Reserves In Textile Industry Development

In order to maintain the rapid growth of the national economy and avoid falling into the middle-income trap, a large number of reform tasks were identified in the Fourth Plenary Session of the the third Plenary Session of the 18th CPC Central Committee and the Fourth Plenary Session of the Central Committee of the CPC, and it was requested to be completed by 2020.

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To promote the centralized management of cultivated land, release the agricultural population and raise the rate of urbanization, the major policy path will be that the state will gradually change the price control means of the original agricultural products and play the role of market allocation of resources, and make full use of competition to promote the production of staple crops by the cultivated land, so as to enable the scattered farmers to develop all kinds of farming and breeding industries. At the same time, we need to ensure the stable development of the service industry and the manufacturing industry and absorb the pferred agricultural population.

Implementation of the cotton industry, the starting point of specific policies is to reduce target prices and promote the healthy development of the textile industry.

The target price of the new year has been introduced and reduced.

In terms of development, the key lies in the price difference between domestic and foreign markets. Excessive price spreads have damaged the competitiveness of the domestic textile industry, suppressed the creation of social wealth, affected the employment level of the labor force, and resulted in a substantial reduction in the tax revenue of the textile industry.

Before the implementation of the target price policy, it is necessary to maintain the higher market price to protect the cotton farmers' income. This is also the reason for the accumulation of a large number of cotton reserves. After the implementation of the target price policy, the cotton farmers' income has been guaranteed. The next step is to tilt the policy to narrow or even eliminate the domestic and foreign price differentials, and remove the external shackles that affect the development of the textile industry.

Effective policy measures include the further issuance of import quotas and the start of cotton reserves. It is more appropriate to choose cotton reserves to kill two birds with one stone.

Considering the present quality structure of cotton reserves, most of the cotton can only be used for low count combed cotton yarn. This field is being strongly impacted by imported cotton yarn, and factories and equipment are in the process of elimination and abandonment. If the duration is too long, the capacity of cotton reserves will be largely lost, and even the dilemma of export can only be faced.

Therefore, it is urgent to reduce the difference between inside and outside cotton prices and activate the overall development of domestic textile industry by putting in reserve cotton.

In the case of the overall social benefits, the best time to put in is to start the regular launch in the near future, and stop the launch of the new flower centralization market from September 2015 to January 2016, so as to avoid double supply and trigger too much tension in the market capital chain, so as to avoid exposing the systemic risk of the industry.

The choice of the way of storing cotton is difficult to adapt to the rapid changes of the market if the fixed starting price is put into operation. If the price is higher than the market price, it will be difficult to complete the paction and fail to achieve the goal. If the price below the domestic market price is higher than the international market price, the market will quickly adjust and lead to difficulties in paction after a small number of pactions, and if the choice is equal to or lower than the international market price, it will have a strong impact on the market in a short time, and some enterprises will be hard to bear.

If we choose the floating starting price, adjust daily or weekly according to the market price, it is easy to follow the market changes to form a long-term mechanism. When the calculation formula is slightly higher than the market price, it is still difficult to get a deal. Even if the market price rises, the starting price will follow the rise, and can not achieve the goal; when the formula is slightly lower than the market price, it is easy to deal with, and by controlling the quantity of delivery, it will not make a strong impact on the market in a short time, and find the price equilibrium point by the market.

Very large reserve cotton stocks need to study unconventional measures to minimize losses while protecting domestic industries.

It can be considered that the new cotton will be launched again in the early 2016 when the new flower is concentrated on the market, and will produce 100-200 tons of stock for export auction, suppress overseas prices and give the overseas growers a very pessimistic expectation, so as to crack down on planting enthusiasm worldwide and achieve a sharp decline in planting area.

After the completion of the planting, it should be at a price level at home or abroad or slightly lower in the domestic market. At this time, the strategy of domestic continuous delivery and foreign ordering can be used to reverse the difference between the inside and outside prices of the textile enterprises, and the operating efficiency can obviously rise. It is very likely to reproduce the level of consumption of nearly ten million tons in 2009. The national cotton store can achieve a magnificent turn. By selling at a low price of 300-400 tons, it can effectively enhance the intrinsic value of the remaining 7 million tons, greatly speed up the digestion speed of the cotton and increase the price of the paction.

After reducing the quantity of reserve cotton to a certain extent, the market equilibrium can be re established. At this time, the state reserves should not adjust the scale frequently. In order to ensure the stock structure, small scale round storage can be carried out every year.

This time

The operation process should also be optimized to avoid the waste of social resources.

First of all, the participation of circulation enterprises should be encouraged, and more rational allocation of cotton resources can be facilitated through bundling, distribution and underwriting.

If the circulation company can auction the highest price in the country and sell it at a higher price, it will explain the rationality of the participation of circulation enterprises.

Furthermore, information disclosure should be strengthened so that the overall policy can be expected to facilitate enterprise planning decisions, and the specific progress schedule and batch information can be querying ahead of schedule, so that enterprises can arrange procurement schedule.

Finally, efforts should be made to improve service levels, shorten the time period from paction to delivery, and use more information like electronic bill of lading to enhance the efficiency of the industry.