Cotton Price Upside Down, Textile Industry Can Not Afford High Price, Farmers Do Not Want To Grow Cotton.

< p > Zhou Shengtao, President of China Cotton Association, recently revealed at the 2013 China International Cotton Conference that China's cotton planting area decreased by 6.7% compared with the same period last year, and the cotton planting enthusiasm of farmers was not high, and cotton production continued to shrink in 2013.

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< p > at present, the domestic and foreign cotton price upside down trend expands, and the high price difference problem of the cotton market makes downstream enterprises complain incessantly.

What is the impact of cotton price upside down on cotton farmers and downstream enterprises? Why farmers do not want to grow cotton? < /p >

< p > upside down "worry": < a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > industry cannot bear high cotton price < /p >

< p > a 50 yuan T-shirt is produced in Vietnam, and the cost of cotton and labor can be reduced by 15 yuan.

Against this background, more and more Chinese textile enterprises plan to move their factories to Southeast Asia.

Behind the pursuit of "Southeast Asian manufacturing" is the fact that domestic and foreign cotton prices are hanging upside down.

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< p > Zhu Beina, President of China Cotton Textile Industry Association, said that the price of cotton in China is now over 19000 yuan / ton, and the price difference with imported cotton reaches 4000 yuan to 5000 yuan / ton, and last year it reached 6000 yuan / ton.

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< p > generally speaking, cotton materials account for more than 70% of the cost of cotton textiles.

The high domestic cotton prices seriously affected the stable operation of the cotton textile industrial chain.

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< p > "foreign enterprises that place orders are usually priced at the international cotton price, but the cotton yarn they produce is produced by domestic cotton with higher cost."

Wang Zhixin, manager of Qingdao Xintian Textile Co., Ltd. said that under normal circumstances, the domestic and international cotton price difference is 2000 yuan per ton, so that the enterprise can remain competitive. The current price difference is far beyond the scope that the enterprise can afford.

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< p > "international cotton prices fluctuate according to market demand and supply, while domestic cotton prices are supported by temporary storage and import quotas."

Wang Tiankai, President of China Textile Industry Federation, said that different domestic and foreign cotton price mechanism is the main reason for the difference of cotton price at home and abroad.

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< p > according to Shi Chuanliang, chairman of Xin Shi Cotton Industry Co., Ltd., Xiajin County, Shandong Province, in the face of the current price difference of 4000~5000 yuan between domestic and foreign cotton prices, enterprises without cotton import quotas can not buy imported cotton but can only use high price domestic cotton, which makes most small and medium-sized cotton spinning enterprises lose their competitiveness from raw material cost.

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< p > Wang Tiankai said that the domestic and foreign cotton price difference is within 2000 yuan per ton. China's textile industry can be hedged through technological progress and variety development.

However, when the price of cotton spreads to 4000 yuan or even more per ton, any technological progress and talent reserve in China's textile industry seems to be powerless.

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< p > according to statistics, in 2012, the total export volume of our textiles < a target= "_blank" href= "//www.sjfzxm.com/" > clothing "/a" increased by only 3.3% over the same period last year, the increase being the lowest in recent years.

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< p > hanging upside down: farmers do not want to grow cotton again < /p >

< p > cotton price difference at home and abroad makes textile enterprises eager to use imported cotton.

In order to limit the impact of foreign cotton imports on the national cotton market, China has implemented the cotton import quota system since 2004, and the annual import quota of cotton is 894 thousand tons. However, such a quantity can not meet the needs of the enterprises.

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< p > in fact, although the policy most wants to protect farmers, the income of farmers is not much.

Because of the uncertainty of textile demand, the risk of cotton industry has increased, and the cost of cotton planting has risen sharply in recent years, and the enthusiasm of cotton growers has declined.

Statistics show that in 2013, China's cotton planting area decreased by 6.7% compared with the same period last year, and cotton production continued to shrink.

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At present, why farmers do not want to grow cotton? "The most important thing is that the yield of cotton seed is too low, time consuming, laborious and costly, and the price fluctuates greatly," P said.

Yu Dianping, head of Plant Protection Station of Xiajin county agriculture and Forestry Bureau, has calculated an account: now the production materials of seed cotton, seed, plastic film, fertilizer, pesticide and so on are rising rigidly, and the labor cost of management and harvesting is not less than 40 yuan per person per day, so that the amount of investment per mu is 550~600 yuan. According to the current calculation of 4 yuan per catty, the yield of 500 kg of cotton per mu is only 2000 yuan, which is obviously low.

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< p > to stabilize the market expectations of cotton producers, operators and cotton enterprises and protect the interests of cotton growers, China began implementing the temporary cotton purchase and storage policy in 2011.

Industry experts generally believe that the temporary purchase and storage policy has effectively protected the interests of farmers, avoided the difficulty in selling cotton, and maintained the relatively stable cotton planting area.

However, under the background of the continuous expansion of cotton price differentials at home and abroad, some problems of temporary purchase and storage policy are also exposed.

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< p > Ding Haowu, general manager of the national cotton trading market, believes that the policy of purchasing and storage makes the price difference of textile, especially cotton textile industry more than its affordability, and it is difficult to survive.

The state has been collecting and storing for several years, and its financial burden is very large. In order to meet the needs of cotton and low cost, the operation of "high absorption and low throwing" has increased the cost of capital.

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< p > "temporary purchase and storage is to protect the bottom price of cotton farmers' interests. Such price intervention will distort the market price of cotton and cause difficulties for enterprises.

If there is no price intervention, the interests of cotton farmers can not be guaranteed.

State Council Development Research Center researcher Cheng Guoqiang said.

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< p > upside down: "cotton market is imperative" < /p >

< p > in fact, the abolition of the cotton quota system and the reform of the cotton purchase and storage system has been a long cry, but the problem is how to protect the interests of cotton farmers after the quota has been abolished.

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< p > at the China International Cotton Textile Conference, experts pointed out that in order to solve the sticking point of the current cotton industry, we must reform the current cotton management system as soon as possible, and establish a market-oriented pricing mechanism by adopting cotton direct subsidy and other policies and measures.

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< p > Wang Tiankai suggested adjusting the temporary purchase and storage policy. When formulating the purchase and storage price, we should refer to the cotton price in the international market, reasonably determine the quantity of the storage and purchase, and flexibly carry out the storage and storage of the market according to the fluctuation of the market price, so as to play a role in stabilizing the cotton price in the market.

At the same time, in order to protect the interests of cotton farmers and stabilize the cotton planting area, cotton farmers should be directly compensated according to the policy of direct grain subsidy.

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< p > according to the information disclosed at the 2013 China International Cotton Textile Conference, cotton direct subsidy may become a breakthrough in the reform of the market mechanism of cotton.

Gao Yong, vice president of China Textile Industry Federation, said that after more than two years of appeals, the cotton direct subsidy policy has been loosened, and more than ten cotton related departments have consolidated their ideas.

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< p > "China is a big country of cotton production and consumption. In 2000, textile and clothing exports accounted for 20% of China's total exports. In 2010, the proportion was 13%, although the proportion declined, but the absolute value of exports still exceeded 200 billion dollars."

Zhou Shengtao suggested that a long-term mechanism for stable development of cotton in China should be established in the future.

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< p > "to stabilize the area, improve varieties, increase yield per unit area, and vigorously promote the industrialization of cotton.

In addition, enterprises should be bold in innovation and seek development through institutional innovation, management innovation and technological innovation.

Zhou Shengtao said.

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