Industrial Cluster: More Than 30 Million Mu Of Cotton In Xinjiang Has Been Successively Purchased

In recent years, more than 30 million mu of cotton in Xinjiang Uygur Autonomous Region has been purchased by processing plants. Cotton farmers, who have been busy for half a year, have a good harvest on their faces.

"At present, cotton acquisition has entered the end." Wang Jianhong, vice president and Secretary General of China Cotton Association, told Economic Daily that as of December 19, 2021, the cumulative processing capacity of lint in China was about 4.4863 million tons, a year-on-year decrease of 2.8%, and the quality was significantly improved compared with the previous year. The recent changes in the international trade situation have brought new challenges to the development of the cotton industry. Wang Jianhong said that China's cotton industry will continue to adhere to opening up and cooperation, and changes in external factors will not hinder the high-quality and sustainable development of China's cotton industry in the future.

Stable planting: the income is getting better and better

　　 In inbostan village, Kumishi Town, tuokesun County, Turpan City, Xinjiang, keremu ahemati, a 38 year old cotton grower, has been dealing with cotton for seven years. Since 2018, all cotton fields in keremu will be mechanized, and cotton planting will be easier and more efficient, and the income will be better and better.

"There is Beidou navigation for sowing, automatic drip irrigation for watering, and mechanization for picking cotton." Keremu said that in recent years, the scale of cotton planting has increased year by year, and now it has reached more than 600 mu, and the annual net income is more than 600000 yuan.

In recent years, with the implementation of cotton target price subsidy policy, agricultural machinery subsidies and land transfer policy support in Xinjiang, the income of cotton planting is increasing, the cotton planting area and cotton yield in Xinjiang are growing rapidly, and the proportion of the national cotton industry is increasing.

"Cotton production in Xinjiang now accounts for more than 90% of the country's total output." According to Wang Jianhong, the total cotton yield, unit yield, planting area and commodity allocation in Xinjiang ranked first in China for more than 20 years.

Compared with Xinjiang, the cotton planting area in other provinces decreased year by year due to the influence of planting benefit and planting structure adjustment. Liu Shuang, general manager of Hubei Yinfeng cotton Co., Ltd., who is checking the processing progress in Xinjiang, told reporters that Yinfeng used to carry out business in China, but now the whole acquisition and processing business is put in Xinjiang.

In order to stabilize cotton production, all departments of the national cotton trading market cooperated closely and implemented the work of "professional warehouse supervision + warehouse notarization inspection" in Gansu Province. As of November 30, 2021, the reserved storage volume of cotton is 13800 tons, and the annual storage volume is expected to exceed 20000 tons.

Stable quality: effect of fine management

　　 In 2021, affected by cold air in the early growth stage of Xinjiang cotton, the growth and development was later than 2020, and the growth trend was weak; From June to August, the weather was good, and the growth trend became stronger and even better than that in 2020. The picking was basically finished at the end of November, and the yield per unit area was worse than expected.

According to the survey results of China Cotton Association on the national cotton yield at the end of November 2021, the total yield decreased slightly compared with the previous period because the unit yield was not as expected. Liu Shuang revealed that according to the statistics of the national cotton quality monitoring center, the output of Xinjiang cotton in 2021 is lower than that of the previous year.

Although the weather affected the yield, it did not lower the quality. The cotton quality in Xinjiang in 2021 was significantly improved compared with the previous year. According to the statistics of China fiber quality monitoring center, the indexes of cotton color grade, length, breaking strength, marklon value and length uniformity of Xinjiang cotton have been greatly improved compared with the same period in 2020.

Liu Shuang said that the better light and heat conditions in Xinjiang, together with the improvement of Cotton Subsidy Policy, and the fine management of water and fertilizer from seeds to planting, have played a role in promoting the improvement of cotton quality in Xinjiang.

The mechanization of cotton planting in Xinjiang continued to improve. Wang Jianhong introduced that in 2021, the proportion of machine picked cotton in Northern Xinjiang exceeded 90%, and that in southern Xinjiang was close to 80%. The equipment owners who run around in the front line of cotton harvest have gained a lot. Abuduwaili hujiamaiti, a villager in the village of inbostan, who bought two forklifts, can earn 80000 yuan just by loading and unloading cotton in the cotton harvest season for a month.

Stable price: expectation of processing enterprises

　　 In 2021, the purchase price of seed cotton is high, and then the price begins to fall. On November 18, China's cotton price index reached the highest of 22713 yuan / ton. After that, with a large number of new cotton on the market, reserve cotton continued to be put in, and enterprises had more optional resources, and cotton prices showed a downward trend.

"At the beginning of the acquisition, the domestic and foreign cotton prices increased rapidly, and the spot price reached a new high in nearly 10 years." Wang Jianhong recalled that China's cotton price index on December 23, 2021 was 21947 yuan / ton, still higher than the price of imported cotton. If the average purchase price of Xinjiang seed cotton is 10.5 yuan / kg, the price of lint cotton is 22893 yuan / ton. The market price is lower than the processing cost, which will cause greater business risks to processing enterprises.

Liu Shuang told reporters: "the acquisition cost in 2021 should be more than 50% higher than that of the previous year." In his view, in addition to overcapacity, there was a reduction in cotton production and a rush to collect during the acquisition. In addition to the impact of commodity prices, many factors pushed up the purchase price.

On the one hand, the high cotton price may cause the cotton ginning plant to lose money in purchasing high price cotton, and on the other hand, it will bring risks to the downstream cotton, textile and clothing production and export.

According to the feedback from many cotton producers, the lint production cost in 2021 is mostly around 23000 yuan / ton, but the current acceptable raw material prices of spinning enterprises are between 21000 yuan / ton and 21500 yuan / ton. In the past years, most of the manufacturers were able to unwind the spot stock successfully after the futures price gave the hedging opportunity. However, the spot price of 2021 was seriously inverted, which made the ginning enterprises lose the hedging opportunity.

Wang Jianhong suggested that suspending the supply of reserve cotton and increasing the import quota will help to ease the pressure of spot inversion in cotton price period, narrow the price difference between domestic cotton and imported cotton, and promote the sales of domestic cotton.