Where Is The Low Quality Home Of Cotton Farmers? Can They Be Sold At Low Prices?

At present,

Cotton sales activities are coming to an end. Some cotton enterprises have stopped purchasing work considering the cost of production and processing and the quality of cotton.

This year, the quality of seed cotton in Xinjiang has dropped significantly compared with previous years. In order to ensure the smooth sale of lint, some cotton enterprises refused to accept seed cotton below 27mm length, so cotton farmers' low quality flowers, especially those whose length is not up to standard.

Where will the end result be?

According to the national cotton market monitoring system statistics, as of November 13, 2015, Xinjiang cotton picking rate was 92.7%, and the selling rate was 95.7%.

According to China's cotton notarial inspection data, as of 9-10 months, Xinjiang cotton length in 28mm and above length accounted for 44.58% of the average, horse value in B file above the average proportion of 19.87%.

In the past year, Xinjiang cotton accounted for more than 85% of the two indicators. We can see that the quality of Xinjiang cotton has declined considerably.

This year cotton quality and structural imbalance is imminent. In the face of high quality cotton or low quality cotton double selection, some cotton enterprises in Xinjiang choose to stop work and refuse to accept in the later stage of cotton sale in order to avoid risks.

A person in charge of a cotton enterprise in Akesu, southern Xinjiang, said that about 70% of cotton enterprises in Akesu and Kashi have stopped collecting, and only a few enterprises are still insisting on the acquisition of low quality cotton.

As the main body of market operation, cotton enterprises do no harm in doing so. However, how do cotton farmers handle cotton? The answer is that they can only sell at a low price.

Especially in 2015, when the market price was not ideal, cotton farmers could not wait until the new year to sell again.

In 2015, the implementation plan of cotton target price in Xinjiang stipulated that the deadline for sale information statistics in January 31st of next year should be sold to cotton processing enterprises before the cotton seed processing enterprises. The cotton sold thereafter will not be included in the statistical scope of subsidies.

This means that the low quality cotton in the hands of cotton farmers must be sold at any price, otherwise they will not be able to get any subsidies.

Under such circumstances, cotton price below 5 yuan / kg is normal.

It is understood that at this time also dare to continue to buy cotton seed processing cotton enterprises, in addition to considering the cost factors, mainly because of its stable air customers do not worry about orders, otherwise they dare not take such a big risk to insist on acquisitions.

This year, the polarization of cotton prices has begun to appear.

A textile manufacturer said that this year, everyone has expressed concern about the quality of cotton, but

It is indeed a rare opportunity, because the polarization of cotton prices will further reduce the price of low quality cotton, which is conducive to further reducing production costs and enhancing product competitiveness.