Cotton "Minimum Protection Price" To Buy And Store &Nbsp; Can The Textile Industry Get Out Of Difficulties?

Recently, cotton growers in many parts of Shandong began.

Stable cotton prices can effectively reduce the textile industry.

The state's bottom purchasing farmers have "reassurance".

Although it often rains in the near future, it may affect the quality of cotton, but when looking at cotton that is nearly mature, Jin Pingshun, a cotton grower in Jin Hao Zhuang, Linqing City, Shandong, is in a good mood.

"If there are no major disasters in the later stage, the cotton output this year should be very good."

He said.

In the past, output would not necessarily yield a good harvest. The frequent occurrence of "cotton and cheap injury to farmers" has made cotton farmers suffer a lot, but this year cotton farmers have no such worries.

The state has introduced policies in March this year. From September 1st to March 31, 2012 this year, in the 13 provinces of Xinjiang and Shandong, the minimum purchase and storage price of standard grade lint of 19 thousand and 800 yuan per ton is not limited to purchase. This policy is considered by the industry to be the lowest protective price system of cotton.

This year's purchasing and storage method puts forward that when the price of the cotton market is monitored for five consecutive working days, which is lower than the provisional storage price of 19800 yuan / ton, the China Cotton Storage general store will issue a notice of collection and storage, and will officially start the purchase and storage plan on the sixth working day.

According to this policy, the China Cotton Storage and Storage Corporation launched the temporary cotton storage and storage system in September 8th. On the same day, it launched 30 warehouses and a total of 24300 tons of cotton purchase and storage plan.

But in addition to the three day holiday of Mid Autumn Festival, as of September 15th, the purchase and storage for five consecutive days did not close.

Although the temporary cotton purchase and storage system has not yet played a significant role, this policy has been welcomed by most of the industry and farmers.

Ma Junkai, Deputy Secretary General of Dezhou Cotton Association, said that this year's policy of purchasing and storage is different from the biggest feature of the past. It is the first open purchase, which is very advantageous to stabilize cotton prices. No limit purchase can guarantee cotton farmers' bumper harvest after the bumper harvest.

Jin Pingshun said: "the national minimum purchase price is certainly a good thing.

This year, I planted 10 mu of cotton, calculated at 8 yuan per kilogram and 250 kilograms per mu. This year, the gross income of acre land can reach more than 2000 yuan, which is close to the income of grain growing. "

Many cotton growers told reporters that planting cotton was hard work and labor, coupled with the bad market situation in the past few years, so many cotton farmers gave up planting cotton instead of grain, and only those sand and saline land suitable for growing cotton were still growing.

This time, the state adopted a minimum purchase price to protect farmers' hearts.

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This year, "crazy cotton" is hard to reproduce.

In recent years, cotton prices often fluctuate significantly.

In November 2008, the price of lint fell to below 10 thousand yuan per ton, and cotton prices began to rise rapidly in the second half of 2010. The highest price reached 33000 yuan / ton in November last year, and now it has dropped to about 20 thousand yuan / ton.

The fluctuating cotton price has caused many cotton spinning enterprises and garment manufacturers to complain incessantly.

Experts predict that because of the increase in cotton planting area and the implementation of the national temporary storage system this year, cotton prices will be difficult to reproduce the craziness of last year.

Dezhou city of Shandong province is one of the key cotton producing areas in China.

In 2010, the cotton planting area in Dezhou was 1 million 550 thousand mu, a decrease of 32% over the previous year. This trend has been reversed this year.

Ma Junkai said that the cotton planting area in Dezhou was about 1 million 600 thousand acres this year, an increase of 50 thousand mu over the previous year, and the overall growth of cotton was better than that of last year, and the output is expected to increase.

China Cotton Association August survey results show that this year's cotton output is expected to be 7 million 380 thousand tons, an increase of 11% over the same period last year.

The expected harvest of the world's cotton is also conducive to stabilizing cotton prices. Recently, the US Department of agriculture (USDA) released the global cotton supply and demand monthly report. It is estimated that (2011 / 12) the world's cotton output will be 26 million 772 thousand tons, while the total consumption will be 25 million 87 thousand tons.

Yu Dianping, director of Plant Protection Station of Agriculture Bureau of Xiajin County, Dezhou, said cotton prices rose last year, and seed cotton prices were nearly 15 yuan / kg, which led to the enthusiasm of cotton growers.

The cotton planting area of Xiajin county is 544 thousand and 800 Mu this year, which is higher than that of last year.

In the future, if prices can be stabilized, the planting area will be stable, and the cotton security of the country will be safeguarded.

Ma Junkai said that the cotton price in the second half of this year can not rise again and again, and it is estimated that it will stabilize at the price level of 20 thousand yuan to 25 thousand yuan per ton.

However, some experts have warned that this year's cotton market should not be too optimistic.

Xing Zheng, director of marketing of Ji'nan business department, said that due to cotton entering the key growth period, the weather factor is also the focus of speculation in funds in the second half of the year, once the hot money comes again.

Textile enterprises need time to get out of difficulties.

Reduced orders, frequent fluctuations in raw material prices and rising labor costs are the main reasons for the predicament of cotton spinning and garment production and processing industry since last year.

Although the national temporary purchasing and storage policy has stabilized cotton prices, the industry believes that it will take some time for the cotton spinning industry to take advantage of the difficulties.

According to the data provided by Dezhou Cotton Industry Association, in August, the mainstream price of 21 pure cotton yarn was around 25800 yuan / ton, 32 cotton yarn was around 27000 yuan / ton, 40 cotton yarn was 28400 yuan / ton up and down, 1400 yuan / ton lower than the beginning of the month, 13000 yuan / ton lower than the highest price at the beginning of March this year, or 32%.

"As cotton prices stabilized in August, the price of cotton yarn tended to be stable at the end of the month, and sales were slightly faster than before, but prices were difficult to raise.

The pattern of oversupply of cotton yarn market has not fundamentally changed, and sales situation is still grim.

Ma Junkai said.

How to break the market predicament as soon as possible by stabilizing the cotton price is a problem that every enterprise is trying to solve.

Wang Sishe, general manager of Hengfeng Textile Co., Ltd., Dezhou, said the pressure on the industry is still low market demand, insufficient orders and fewer export orders. It is crucial to seize the opportunity to stabilize cotton prices and open the market.

Gao Fang, executive vice president and Secretary General of the China Cotton Association, also said recently that the textile industry is facing greater domestic inflationary pressure, financing difficulties and increasing costs. The international economic situation is changing, demand rebounded unsteadily, the RMB exchange rate continues to appreciate, international competitiveness is weakened, exports are uncertain, prices of labor, raw materials, energy and other kinds of prices are rising, costs are rising too fast, and enterprises are hard to digest.

Experts believe that the difficulties currently facing the textile industry are still grim. On the premise of stable cotton prices, it is expected that by the end of this year, with the gradual increase in demand for garment market, textile enterprises will gradually usher in the opportunity to get out of the dilemma.

Zhang Weiguo, director of the Economic Research Institute of the Shandong Academy of Social Sciences, said that the textile industry should make use of the opportunity for cotton prices to fall and stabilize, gradually adjust the product mix, research and produce products with high added value, and prepare for getting out of the predicament as early as possible.