Four Major Problems Facing Cotton Textile Industry In China At Present: Cotton Subsidies May Be Limited.

"Recently, television has been playing high frequency on cotton, which has attracted the attention and attention of the leaders of the State Council. What has happened to cotton in our country and what problems are facing?"

Du min, a rural economic research center of the Ministry of agriculture, held the theme of the conference at the fourth China Cotton forum.

The outstanding problems and Countermeasures of cotton spinning industry chain also show that the meeting is highly consistent with the government's wishes.

Du Min said that the development of marketization and globalization of cotton in China from the end of last century to the beginning of this century has entered a period of two markets and two kinds of resources, and the situation we are facing is particularly complicated.

Under such circumstances and background, how to choose our policy and how to take the industry is very important.

In view of such an environment, Du Min believes that the current national cotton

The bigger problems facing the industry are as follows:

First, the cotton industry in China is confronted with the contradiction between the shortage of production and the oversupply.

The largest cotton planting area in China reached about 80000000 mu, and the highest output was about 7000000 tons. The cotton used by spinning enterprises reached 12 million tons at the highest time, and then began to decline after 2008. It should be about 7000000 tons in the next two years, but the output dropped to 500-600 tons.

Under the influence of two kinds of domestic and foreign resources and foreign prices, 2011-2013 years of storage and storage in China amounted to about 16000000 tons.

12 million 500 thousand tons, and inventory is still over 10 million tons.

If policy choice is not good, it may deviate from the market development law.

Second, the comparative advantage of China's agricultural products is gradually losing, and cotton is particularly prominent.

First of all, there is no profit for planting cotton now. Farmers in Xinjiang sell six yuan to six yuan per kilogram of seed cotton and eight are guaranteed cost. The reason is that the small-scale farmers have no benefit, but the cost of land will increase if the scale is large.

Secondly, although the prices of fertilizers and pesticides have declined over the past two years, the labor cost of cotton has only increased. The wheat and Maize in the mainland have been saving time and labour and the opportunity cost is low, so the advantages of cotton production have been gradually lost.

In recent years, apart from cotton, the advantages of wheat, rice, corn and soybean are also decreasing. There are three phenomena of increasing volume (output increase, import increase and stock increase). A large number of inventory backlogs have brought heavy financial burden to the national finance.

Third, cotton production is facing considerable risks.

Over the past few years, China's cotton production pattern has undergone great changes, from the former three pillars to two points, and now it is almost unique.

Now, the problem of over exploitation of water resources and land in Xinjiang is extremely serious.

According to the Korla area, before the cotton should be poured six water, now poured to four water is bitter salt water, the land salinization, desertification is very serious.

Moreover, the problem of farmland pollution in Xinjiang is quite serious.

Xinjiang cotton is difficult to grow away from plastic film. However, the long-term use of plastic film causes soil whitening, coupled with the use of pesticides and fertilizers, the land is facing a huge threat.

This year's extreme climate has given us a warning that safety in cotton production must be ensured.

According to the Ministry of agriculture's national cotton production monitoring analysis and forecast, the cotton output this year may be about 4800000 tons.

As a large textile country, we must ensure that there is a certain amount of cotton production.

Fourth, target price subsidies are facing constraints.

It is a question of cost whether Xinjiang cotton is based on area or by harvest, but the biggest problem now is WTO's "yellow box" restriction.

Recently, WTO put the cotton issue on the negotiating table and pushed it to the top of the storm. This should arouse our attention.

Du Min said that in the short term, how to digest cotton reserves is a top priority. It is suggested that relevant departments, total control, price integration and orderly delivery.

In the long run, cotton production needs to be positioned.

According to the current situation in China, cotton production still needs three pillars.

While improving production capacity and cotton quality, we need to take precautions against it and turn green box subsidies on the basis of full yellow box subsidies. In this regard, we can learn from the practice of American income insurance to make China's cotton industry develop with sustainability.