The Cotton Planting Mode Must Be Adjusted To Provide The "Rear" Supply For The Textile Industry.

As the weather gets hotter, cotton planting in the whole country is coming to an end.

The reporter came to Hebei, a big cotton producing province in China, and learned that there are cotton farmers' abandoning seeds in various producing areas this year. The cotton planting area or the lowest level in recent years has been predicted by many parties this year.

What causes cotton growers to give up cotton planting this year? How will it affect China's overall cotton market?

The reporter came to the ground of East Village of Nangong City, Hebei. Looking at it, it was a piece of abandoned loess land. The wind blows up a layer of sand.

Villager Zhao Jinxi said that cotton prices have been below 3 yuan for 2 consecutive years, and planting one crop of cotton will not only make less money, but also make artificial labor. This year, he replanted some cash crops such as coarse cereals.

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Zhao Jinxi: as early as I planted more than 40 mu, the price is low.

Now grow mung beans, Chinese yam and scallions.

Cotton farmers in Weixian County County, Hebei, are also not enthusiastic about cotton planting.

Zhao Li Cun, a person in charge of the village committee, said that the more than 7000 acres of their village had been planted in the past, and the planting area decreased significantly over the past two years.

Master Zhao: since the price is low, there are some wheat, seed sticks, yam, chili and tree species, and this year is more than 4000 mu.

Hebei is one of the major cotton producing provinces in China. The annual planting area of cotton is close to 6 million mu, mainly in three places of Xingtai, Handan and Hengshui.

Taking Xingtai as an example, the cotton planting area in 2014 was nearly 2 million mu, but this year it is less than 1 million mu.

According to the situation of planting all over this year, the sowing area of the whole province is very hard to reach 4 million mu.

Sun Liwu, an analyst with Zhuo Chuang's information market, analysed cotton prices in a sluggish fashion and limited market demand.

Sun Liwu: 2014

Began to cancel the purchase and storage, to Xinjiang target price subsidies, the mainland's quota subsidy policy, prices fell sharply, affecting the interests of cotton farmers.

From the point of view of industrial chain, for textile enterprises, both domestic cotton prices are high, the price difference between inside and outside is high, and international competition is intensified. Especially in Southeast Asia, China's market is hindered by the cost advantage, and exports are blocked. Cotton factories operate difficultly and directly pmit to the upstream, causing the domestic cotton industry to be depressed.

By the end of April this year, the national average price of cotton was 12235 yuan per ton, down 7.7% from the same period in 2015, which has reached 60.8% of the highest point in 2011.

Industry analysis, price reduction is the market trend.

But the price has skyrocketed to a straight line, bringing cotton growers increasingly reluctant to grow cotton.

Jia Decai, director of Nangong Agricultural Technology Extension Station, who has been engaged in Cotton Research for more than 30 years, believes that the traditional cotton planting mode must be adjusted. Intensive and large-scale development is the direction of cotton planting in the future.

Jia Decai: Cheng Fang is connected with scale production.

There should be a set of things from varieties, planting patterns and management.

To change the time and process of traditional planting mode, how can we better mobilize the enthusiasm of cotton growers? Jia Decai suggested that a large area of cotton interplanting is an effective way.

Jia Decai: interplanting, raising cotton field benefits, cotton, watermelon intercropping, mung bean intercropping, Potato Intercropping, etc., planting a small amount of mung beans, how much five hundred or six hundred or seven hundred or eight hundred yuan a year, easy to operate.

In addition, cotton growers are also generally concerned about the future of cotton prices in the market this year. Sun Liwu believes that the domestic cotton end inventory in 2015 is as high as 13 million 50 thousand tons, and the supply and demand is seriously unbalanced.

When the national cotton store will come out, it will directly affect the price of staple cotton in the market.

Sun Liwu: the policy background of 2016 is "going out of stock, going to production capacity, deleveraging". In 2016, the national cotton storage wheel came out on the spot, which will limit the space for future cotton price rise. The market is not expected to be too high, at least to maintain the current level of 12000-13000 yuan / ton, and even some enterprises believe that the price of the national cotton mill should be 10000 yuan / ton and below.

Although the overall supply of cotton market is oversupply, but Sun Liwu analysis, in 2016, China's high quality cotton is still in a tight state of supply.

From this point of view, in 2016, domestic cotton prices will appear "ice and fire two days" situation, high and low quality cotton price difference may continue to widen.