" Not Producing " A True Portrayal Of China'S Cotton Industry.

Since the implementation of the cotton target price reform pilot policy, although the effect is remarkable, the cotton industry is still unable to get rid of the high cost of planting, overcapacity and the shortage of high-quality cotton.

According to the white paper released by the State General Administration of quality supervision, inspection and Quarantine of the whole country, the quality of imported cotton has been revealed last year.

The rate of grade, length and strength unqualified was higher than that of the same period of last year.

Even so, in 2015, when domestic stocks continued to be high, cotton imports in China were still as high as 1 million 760 thousand tons.

According to the data released by the National Bureau of statistics, in 2015, the cotton planting area in China was 56 million 980 thousand mu, 10% less than that in 2014, and the total output was 5 million 605 thousand tons, which was 9.3% lower than the same period last year.

Despite the decrease in production, the stock of the reserve cotton reached its all-time highs. In 2015, the reserve cotton stock exceeded 11 million tons, accounting for almost half of the global stock.

As China's largest cotton producer in the world, cotton production accounts for nearly 1/3 of world cotton output. Why do we need to import it into foreign countries?

Insiders pointed out that imported cotton has a certain price advantage, which is in recent years.

Major reasons for sustained high import and domestic cotton inventories have increased substantially.

Cotton "soft rib"

It is worth mentioning that during the past 2011-2013 years, China has implemented the temporary cotton purchase and storage policy for 3 consecutive years.

Has played a certain degree of stability.

However, its disadvantages cause farmers to only pay more attention to output and quality, and their prices also deviate from the market.

To this end, the decision level abolished the temporary cotton purchase and storage system which had been implemented for 3 years in 2014. Instead, the policy was to target the price (which was only tested in Xinjiang) and let cotton prices gradually return to the market rationally.

Ceng Haiwei, director of operations director and research center of China business school, seems that cotton prices have begun to integrate with the market, and the market environment of the industry has improved significantly. The market-oriented mechanism is gradually taking shape, and the cotton industry chain has entered a new stage of development.

Reporters learned that under the policy role, since the beginning of the acquisition season in 2014, the purchase price of seed cotton has decreased significantly compared with previous years.

The purchase price is returning rationally.

The implementation of the target price policy has achieved the "price premium separation" of market regulation, giving full play to the decisive role of market mechanism in price formation and resource allocation.

Even so, compared with imported cotton prices, China's cotton price does not have a price advantage.

Data show that after the cancellation of cotton storage, the lint from 2013 to 13 thousand yuan to 16 thousand yuan per ton dropped to about 12 thousand yuan, but still higher than the foreign cotton price per ton almost 1000 yuan.

In an interview with reporters, Ceng Haiwei said that the price of cotton in China is high and has a direct relationship with the high cost of cotton planting in China.

China's cotton production mode is mainly based on small-scale farmers, with high production costs and low production efficiency, leading to higher cotton prices in China than imported cotton prices.

According to the national cotton market monitoring system, the total cost of cotton planting in the mainland was 1125 yuan per mu in 2015, and the total cost of cotton picking in Xinjiang was 2185 yuan per mu.

It is worth mentioning that most of China's cotton depends on manual picking, and its mechanized operation is relatively small, which raises the final price of cotton to a certain extent.

On the one hand, cotton growers are facing difficulties in selling cotton. On the other hand, the downstream textile enterprises are facing the embarrassment of "no rice under the pot". The lack of quality cotton and the accumulation of poor quality cotton are the true portrayal of China's cotton industry.

In particular, high quality cotton can not meet the needs of the market, and has always been a "heart disease" for downstream textile enterprises.

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Li Xiaozhen, a researcher at the China Research Institute, said in an interview with reporters that domestic textile enterprises began to pform, and the market positioning gradually changed from the low-end market to the high-end market. Therefore, the demand for high-quality cotton in textile enterprises has been increasing in recent years.

The quality of cotton in China is less than that of Australian cotton and American cotton. Therefore, the contradiction between supply and demand of high-quality cotton in China is prominent.

Brand is the starting point of industrial upgrading.

This year is the third year of China's cotton target price reform pilot implementation. The implementation of cotton target price subsidy policy, guiding scientific planting, has a positive effect on optimizing the industrial structure and accelerating industrial upgrading, and the quality of cotton seed has also been significantly improved.

To sum up, it is enough to show that the cotton target price reform in Xinjiang has been pilot for two years, and its pilot reform has achieved initial results.

Li Xiaozhen believes that the development of China's cotton industry needs to focus on improving the quality of cotton, increasing the limited supply of the market, meeting and gradually expanding the demand of high-end market.

In this process, effective policy guidance will play a crucial role.

"Take advantage of the timing of market oscillation, optimize the rational layout of cotton production capacity, and gradually improve the situation of excess capacity in the processing and circulation industry, and eliminate backward production capacity.

We should adjust the industrial structure and strive for high-end cotton products.

Ceng Haiwei said.

Observers in the industry believe that readjustment of the industrial structure and the promotion of high-end cotton products need to promote the upgrading of domestic cotton brands. Brand upgrading is an important starting point for industrial pformation and upgrading.

It is gratifying to note that in recent two years, with the emphasis on improving cotton quality in China, the cotton producing areas such as Xinjiang have been improved from seed selection, cultivation mode, cotton processing and pportation. In recent years, the overall quality of domestic cotton has been improved.

The quality cotton resources produced in Xinjiang and other areas have also become the target of cotton spinning enterprises in the production of high-end products.

The key to the future development of China's cotton industry lies in the shift from quantity to quality.

Li Xiaozhen said.

Reporters also learned in the interview that the scale of China's cotton production will be narrowed and the regional layout will be more concentrated in the future.

The output of cotton growing areas in Xinjiang will definitely increase in the whole country, and the cotton planting area in the the Yellow River River Basin and the Yangtze River Valley has shrunk.

According to relevant media reports, the cotton planted by farmers in some areas is not separated and sorted, with many impurities and poor overall quality, and the price per ton is 1500 yuan higher than that of imported cotton. Therefore, this situation needs urgent improvement.

"Quality is emphasis on brand building, and brand building is mainly concentrated on brand building of regional brands and cotton processing enterprises, which will play an exemplary role in stimulating cotton consumption in China."

Li Xiaozhen said that the success of the cotton industry pformation can not only promote the healthy and sustainable development of the cotton industry, but also will have a great impact on the textile enterprises, and will increase the added value of textile products, which is conducive to the sustainable development of the textile enterprises.

Ceng Haiwei expected that

Further adjustment is needed, and the quality of cotton products needs to be pushed to the middle and high end.

In addition, the import scale of cotton will be reduced and the import pattern will be divided. In the future, China's cotton prices will gradually move closer to the international market prices.