Great Breakthrough Has Been Made In Cotton Policy Reform

3 years of cotton purchasing and storage policy, thousands of Yuan's domestic and foreign cotton price difference and tens of millions of tons of national cotton storage and other unfavorable factors have affected the entire cotton textile industry "12th Five-Year" development, and in recent years, the international economic market has not improved significantly, the advent of the "new normal" of China's economy, the downward pressure on the economy has caused a complex situation of internal and external difficulties for the development of China's overall textile industry, and China's cotton textile industry has a difficult operation.

Cotton textile industry is also facing its own unique structure of raw materials. In the past, the quality of Xinjiang cotton was much higher than that of cotton and cotton in the United States, but in recent years, the policy orientation of "upgrading" for the cotton industry has made China's cotton industry gradually lose its previous quality advantages.

In 2014, the problem of "high levy and low deduction" which troubled the cotton textile industry for 20 years was finally solved.

Anhui province took the lead in putting lint and cotton yarn into the pilot scale of approved value-added tax of agricultural products, and became the first province in the country to break the policy of "high taxes and low deductions".

Subsequently, Hebei, Henan, Zhejiang, Hunan, Shandong, Shaanxi, Jiangxi and Jiangsu also included lint and pure cotton yarn in the pilot scale of approved value-added tax for agricultural products.

In the year 2014 alone, the reform took almost all the key provinces of cotton spinning in China.

At the same time that the good news of "high levy and low deduction" has been coming out constantly, the implementation plan of Xinjiang cotton target price reform pilot project is also eagerly anticipated by the industry.

Cotton direct subsidy policy will be introduced to China.

The subsidy policy was officially changed from "covert subsidy" to "direct subsidy cotton grower".

With the improvement of cotton direct subsidy policy in 2015, the marketization reform of China's cotton policy has been deepened.

Struggling to survive in the serious structural dilemma of raw materials

Facing the market with weak demand, facing the rising production cost, especially labor cost, the pressure of business operation is enormous.

However, compared with the overall level of production in Southeast Asia, China is still the most comprehensive country in the cotton textile industry, whether from the maturity of the industrial chain, the stability of the quality, or the after-sales service.

But overall, during the "12th Five-Year" period, although the industry faced more adverse factors, the business operation difficulties, but the results are still remarkable, especially the reform of the cotton policy, making the enterprises

More and more optimization, such as "high levy, low deduction" and other tax burden, free trade area construction and development of stable textile exports, the rapid rise of new Internet formats, enriched product sales channels.

We have reason to believe that with the further optimization of the survival environment of China's cotton textile industry during the "13th Five-Year" period, the cotton textile industry will have a broader space for development.