There Is Still More Need For Policy Support Than Before.

Now is the harvest time of cotton, but it is the largest commodity cotton production base in China.

In addition to cotton farmers and cotton purchasing enterprises, cotton purchasing market is seldom seen in textile market.

This is consistent with the market condition of China's cotton textile industry, which has been running low this year and the production of textile enterprises has stopped production for the winter.

Demand is sluggish, and sales of Xinjiang cotton are not as good as before.

According to Chinese cotton

In recent years, the association has investigated hundreds of key cotton textile enterprises, and at least 30% of the above scale enterprises have limited production, and more than half of the small and medium-sized enterprises have stopped production because of the high cost of using cotton.

Most of the textile enterprises started to increase the utilization ratio of raw materials such as chemical fiber, and reduced the use of cotton.

A textile industry spokesman, who declined to be named, said.

In order to protect cotton growers' income from cotton planting, stabilize cotton production and reduce production costs of textile enterprises, the state implemented a policy of "collecting and selling new cotton at high price and selling cotton at low prices" in September.

"Even if the state sells cotton reserves to the textile enterprises at the base price of 18500 yuan / ton, the overall turnover rate is below 50%, and the average paction price is 18509 yuan / ton, which is lower than the average spot price of cotton in the whole country."

The above textile industry said, moreover, Chen cotton throwing price and new cotton purchase and storage price difference of nearly 2000 yuan / ton, textile enterprises will not enter the Xinjiang purchase of new cotton, "even if enterprises enter the Xinjiang, I am afraid I can not buy".

The export of Xinjiang cotton has always been one of the most concerned topics in the market. This year, the domestic textile industry is extremely depressed, and the demand for cotton, especially domestic cotton, has been greatly weakened. This is a great challenge to the sale of Xinjiang cotton in the new year.

According to the statistics of the agricultural sector of Xinjiang autonomous region, the cotton planting area in Xinjiang reached 24 million 700 thousand mu in 2012/2013, an increase of 660 thousand mu compared with the previous year. The total output is expected to reach 3 million 200 thousand tons, an increase of 120 thousand tons over the previous year, accounting for about 49% of the total cotton output in China.

"If not this year

The sale situation of Xinjiang cotton will be even more severe.

A Xinjiang cotton industry source told futures Daily reporters that the current cotton purchase enterprises in Xinjiang basically have only one purpose, and they will hand over all the lint that they have produced.

"But not all cotton can be stored.

For cotton that can not be stored, the acquisition of enterprises will be limited or rejected because of the huge market risks and late sales difficulties. This may lead to the difficulty of selling cotton in some areas and affect the interests of cotton growers.

According to the reporter, this uncertainty risk, although many cotton enterprises have hedged in the futures market, most of the hedging price may be lower than the cost of lint, even if sold through the futures market, there will be a certain loss.

Therefore, unlike previous years, the hot market of seed cotton purchase is different. This year, considering the quality and risk reduction, cotton enterprises are relatively cautious in purchasing seed cotton, always weighing the quality and price of seed cotton, and the purchase of some ginning plants is in a state of stop.

More policy support is needed.

"Although this year is open and unlimited storage, the past factors that affect Xinjiang's cotton storage and storage still exist, such as auction, storage capacity, speed of public inspection and other factors may cause difficulties in storage and then indirectly affect cotton farmers selling cotton."

Xinjiang autonomous region cotton trade association responsible person said, and wait until after the public inspection to determine whether to enter the store, which increased the risk of cotton purchasing enterprises and agricultural issues.

In addition, cotton and long staple cotton other than grade 4 are still unable to enter the store this year, and cotton operators will "shut them out".

In addition, the limitation of railway pport capacity will objectively lead to lagging behind the centralized listing of cotton in Xinjiang. To a certain extent, it will also affect the sale of Xinjiang cotton and the delivery of futures cotton.

"The support policies of the state to promote the development of cotton industry in Xinjiang, such as cotton variety subsidy, new railway cotton pportation subsidy and cotton purchase and storage, are mostly one thing and one argument, which can no longer meet the new requirements of Xinjiang's cotton industry development."

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To this end, the responsible person of the Xinjiang development and Reform Commission recently called on the "Xinjiang cotton Market Summit Forum" held in Urumqi in 2012 to urge the state to give more policy support to the cotton industry in Xinjiang: establishing a long-term mechanism for cotton, improving the subsidy standard for fine varieties, launching a comprehensive direct subsidy policy for cotton production, appropriately extending the cotton storage time in the new year, putting the long staple cotton into the national storage area, giving the Xinjiang cotton road pportation the "green channel" treatment and enjoying the freight subsidy, so that the cotton industry in Xinjiang can be further consolidated.

Wei Gaocheng, chairman of the cotton trade association of Xinjiang autonomous region, also hopes that the state can relax the storage and storage standards of cotton and extend the storage time. The pilot finance will directly supplement cotton farmers' policies and actively carry out road pport of cotton.

"The storage and storage standards should be relaxed to 5 and 6 grades of fine cotton and long staple cotton. The storage time can be extended to June. The policy of direct subsidy to cotton farmers in Xinjiang can be tested in accordance with the relevant provisions of the state grain direct subsidy, and a sound operation mechanism for both internal and external cotton price linkage and market pricing will be established. At the same time, the subsidy policy for pportation of 500 yuan / ton of Xinjiang cotton road should be implemented as soon as possible."

Years of intensive cultivation have made Zhengzhou's cotton futures market play a significant role and market participation has been continuously improved.

More and more cotton enterprises have made steady progress in the futures market, and their comprehensive strength is growing day by day.

However, subject to

As for the policy restrictions that can not enter the futures market, a considerable part of the cotton enterprises are unable to make full use of the risk of futures market management because of poor funds.

In this regard, Wei Gaocheng suggested that the cotton purchase credit mechanism should be perfected, and on the basis of ensuring effective control and prevention of risks, we should study the policies and methods of cotton purchase loans into the futures market as soon as possible so as to help cotton enterprises avoid risks and lock in profits.

At the same time, we should establish a green channel for the cotton purchased by the Agricultural Development Bank, giving priority to the storage and pportation of the cotton.