Upgrading Cotton Quality Should Grasp Supply Side Reform

Cancellation of temporary reserves, cancellation of subsidies, weak consumption, oversupply of market and high historical inventory.

Under the new pattern,

Where is the road to development?

From 12 to 13, 2016 China's cotton industry development summit was held in Han Dynasty. Nearly 700 guests from the world's major cotton producing countries and regions gathered together to express their views.

Great potential for cotton consumption market

From 2001 to 2015, China's cotton demand increased first and then decreased, and now it has returned to the level of the beginning of this century.

"At present, the proportion of cotton consumed in China is only half that of the world average."

Gao Yong, vice president and Secretary General of China Textile Industry Federation, predicts that by 2020, China's fiber processing capacity will reach 60 million tons, increasing by about 1000000 tons per year.

Cotton consumption can be restored to 7 million 500 thousand tons, providing a great development space for China's cotton industry.

"The world has entered the cotton era, cotton fiber can not be replaced."

Li Jianquan, chairman of the industry group and chairman of the health care group, said that people now have a new understanding of cotton products, reducing the amount of chemical fiber and returning to their innocence, which is the consumption concept of many mothers.

"If you use cotton to make paper towels, you can not only reduce wood consumption, but also upgrade products."

Li Jianquan, for example, used to have gauze for medical gauze and easy to get fluff, but the patent technology of nonwoven gauze has overcome these defects.

"With the pformation and upgrading of the cotton textile industry, the low end

Production capacity is reduced, production capacity of medium and high-end products is increased, quality improvement and efficiency increase, and consumption expansion become a new pattern for the future development of the industry. "

Luo Lin, deputy director of the National Council for supply and marketing cooperatives, pointed out.

Upgrading cotton quality should grasp supply side reform

"At present, there are widespread problems in cotton quality in China, such as short fiber, low intensity, different fibers and poor consistency, mainly due to uncomplicated varieties, unscientific production and picking methods."

Yang Zhaoliang, Deputy Secretary General of the China Cotton Association, pointed out that due to the fact that the machine picked cotton technology is not matched, the impurity content of China's machine picked cotton is much higher than that of American cotton and Australian cotton.

Yang Zhaoliang said that there is also a policy oriented problem. At present, the target price subsidy policy is linked only to output and area, resulting in producers neglecting the quality of cotton.

The government should give full play to the guiding role of policies, link subsidies and quality, strengthen seed management from the source of supply side, support machine harvested cotton and carry out large-scale planting.

"In this respect, Xinjiang has provided very good experience."

Cheng Guoqiang, director of the development research center of the State Council and director of the International Cooperation Bureau, said that Xinjiang's target price mechanism has basically established the pricing mechanism of the cotton market while protecting the basic income of cotton farmers. It has changed the situation of past subsidies to stimulate output, domestic cotton entering warehouses, and foreign cotton entering the market.

Play the role of reserve control to inventory

In 2014, the state ended the 3 year cotton purchase and storage policy, which was changed to Xinjiang target price subsidy and 2000 yuan / ton subsidy in the mainland.

This year, the mainland direct subsidy policy has also been abolished.

"This will effectively promote the marketization of cotton prices and facilitate the coordinated development of the upstream and downstream industries, but the huge giant cotton storage inventory digestion problem can not be avoided."

Lu Huaiyu, vice president of China Cotton Association, pointed out.

The Association statistics show that in 2015, China's cotton stocks were 12 million 768 thousand tons, of which the reserve cotton reached 11 million tons, the highest in history.

In May 3rd, after a long wait for the market, the main curtain of the national cotton store was finally officially opened. The storage of cotton from 2011 to 2012 and part 2013 of the cotton reserves were temporarily scheduled for 2 million tons.

Yao Mingye, general manager of China cotton storage management company, believes that the reserve should play a two-way regulatory role in cotton regulation. We should make full use of the two international and domestic markets, link the price of rotation with the market price, and avoid the quality loss caused by the reduction and reduction of reserve cotton.

China's inventory move is closely linked to the world.

Bakrou, President of British trail company, said that the faster the stock went to China, the shorter the pain period of the whole industry, and the sooner the Chinese cotton industry would recover.

New pattern of Xinjiang cotton and cotton in the mainland should be formed.

Cai Yajun, chairman of Hubei Yinfeng Industrial Group, said that the main body of cotton production in China is now in Xinjiang, which has increased the cost of cotton trade logistics. Xinjiang's cotton industry thriving is also not conducive to the steady development of China's cotton textile industry.

He disclosed that due to the lack of resources in our province, some cotton enterprises in Xinjiang province bought the rented factories in Shandong Province. The acquisition cost in different places was higher than that in the local enterprises by nearly 1000 yuan / ton, and the competitiveness was less than that of the local enterprises. The benefits were generally not good. In the past two years, cotton business losses of 400 cotton enterprises in the province accounted for more than 80%, and many enterprises were closed down.

"The new pattern of Xinjiang cotton and cotton in the mainland should be formed."

Cai Yajun quoted the survey data that the Yangtze and the Yellow River River cotton textile industry accounts for about 80% of the national cotton textile industry, indicating that the main consumer is still in the mainland, and Hubei alone has about 500000 tons of its own shortfall.

It is suggested that the state should strengthen the protection of the cotton industry in the mainland, especially the Yangtze River Basin, stabilize the basic cotton field area, retain the production subsidies for the high quality cotton producing areas, and provide policy support to the leading enterprises, so as to form a local driving effect.