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Industry Information
Cotton Shouchu policy will no longer be "high cotton" era or the end
ClassIndustry Information Time2014/3/14 10:52:40
According to Chinese sound "center wide news" report, the central document No.1 this year clearly, will start in Xinjiang cotton target subsidies pilot, continuous three years of implementation of cotton Shouchu policy will no longer be, this also means that will open up cotton prices, in line with international standards. For cotton spinning enterprises, had to buy "high cotton" era or the end.
2010 to 2011 years, China's cotton market fluctuations, to protect the farmers the country for three consecutive years to implement policy temporary storage of cotton, the removal of the acquisition on cotton, domestic cotton prices thus protected. But the side effects are also followed, in 2013, for example, domestic cotton and City purchase price of 20400 yuan per ton, while the international price of only 15000 yuan, farmers have been protected, cotton textile enterprises because of the high cost and difficult survival, data display, in 2013 the domestic textile industry in the international and domestic environment under the background of sustained downturn, enterprises operating rate decline, the stock is rising, cotton spinning enterprise scale above the average operating rate of about 72%, the average inventory of cotton products in 20-30 days, cotton products are difficult to get rid of the loss making situation. Therefore, deputy director of the central rural work leading group Chen Xiwen introduction, to reform the formation mechanism of grain prices, Xinjiang prices will take the lead in water.
Chen Xiwen: the direction of reform is from the temporary storage of simple formulation and execution of the lowest grain to gradually implement the target price, the government told farmers this year about what kind of working condition, the price level is a price, but the actual food produced, changes may be the relationship between supply and demand and new, when food prices higher than the target prices, farmers can make money, but the city is part of the lower income consumers may be subjected to consumer pressure is relatively large, the government will be on the urban low income consumers are appropriate subsidies. Similarly, the actual market prices below the government announced target price, to subsidies for farmers.
Analysis says, the price reform or will bring the mianjia fall, although for some large inventory of enterprise to bring the pain, but in the long run, is conducive to the development of the whole industry, at the same time low-priced imported cotton is still in shock the domestic cotton spinning enterprises, in 2013 China's total imports of 2100000 tons of cotton yarn, 37.51% more than in 2012, enterprises should recover also faces multiple challenges. (CNR network)