How Does The "Cotton Knot" Bind The Textile Industry How To Unlock It?

In Qingyuan, Guangdong Spin Chen Jiaolan, general manager of Industrial Co., Ltd., in the eyes of enterprises, wants to survive only one word: boil. "If you want to import cheap cotton abroad, you will have to eat the domestic high priced cotton according to the proportion. The factory will use 1000 tons of cotton a month to buy, and then it will lose money and stop it if it is not bought."

Despite the fact that domestic cotton supply is still adequate, many cotton spinning enterprises like Tak Tai can only be deterred by the high cotton price gap at home and abroad. How can the textile industry resolve the adverse impact of raw material constraints? At the recently concluded China International Textile raw materials market, this topic sparked heated discussions among experts and business representatives.

"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 the China Textile Industry Federation, said: "the domestic and foreign cotton price mechanism is the main reason for the difference between domestic and foreign cotton prices."

China began implementing the temporary cotton purchase and storage policy in 2011, and seized about 3100000 tons of cotton at the price of l.98 yuan per ton, accounting for 43.5% of the actual output of 7 million 200 thousand tons of cotton in that year. Since then, China's cotton prices fluctuated around the temporary storage price. The price of cotton storage and storage this year is 20 thousand and 400 yuan per ton.

Under the influence of insufficient international market demand and high yield expectations, the price of cotton in the international market showed a continuous downward trend, and the price difference between cotton and cotton increased further. It once reached more than 5000 yuan per ton, and the difference is still between 3500 and 4000 yuan.

Zhu Hongren, chief engineer of the Ministry of industry and information technology, said that China's temporary cotton purchase and storage policy ensured the interests of cotton farmers and stabilized the domestic cotton prices. However, the spread of domestic and foreign cotton prices widened, which greatly weakened the international competitiveness of China's textile industry, especially the small and medium-sized enterprises mainly made of YISHION cotton yarn.

China Textile Industry Federation data show that from 1 to April, the added value of textile industry increased by 10.4% compared to the same period last year, down 4 percentage points from the same period last year. China's share of major import markets, including the European Union and Japan, has continued to decline.

"Domestic and foreign cotton price difference is within 2000 yuan per ton, the textile industry can still be hedged by technological progress and variety development. And when the price of cotton is 4000 yuan or more per ton, it is difficult to make up for other ways. " Wang Tiankai, President of China Textile Union, said that the current price gap at home and abroad is likely to exist for a long time.

"Unlike food, not all cotton can be digested domestically. We must compete with the international market and consider whether the international market can be accepted." Chen Tao, chairman of Louis Da Fu China company, said that after 2010, because of the higher average price of storage and storage than the international market, China's consumption dropped by more than 20% when the global cotton consumption dropped by 8%.

Di Hui, deputy general manager of Huarun Textile Group Co., Ltd., told reporters that the current orders are mainly in three and April, and the future order situation is still worrying. 30% of enterprise production has turned to non cotton products, trying to re open the market.

The "cotton knot" has tied up the textile industry. Representatives and experts suggested that the policy of temporary purchase and storage be adjusted. When formulating the price of the purchase and storage, we should refer to the cotton price in the international market, rationally 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 cotton farmers' interests and stabilize cotton planting, it is suggested that cotton farmers should be directly supplementation with reference to direct grain subsidy policy.

"The protection of this protection is good, we should let go of the liberalization and let the market adjust itself." Wang Tiankai said.

Hui Hui, deputy general manager of Huarun Textile Group Co., Ltd., can also draw on India's way of subsidized cotton production, which not only protects the interests of cotton farmers, but also enables enterprises to integrate with the market.

"This is a problem in development. Encouraging enterprises to continue upgrading, speeding up energy saving and emission reduction and improving value-added products is still the industry direction." Wang Tiankai said that this includes optimizing the structure of raw materials, improving the development and application capabilities of natural fibers such as chemical fibers and wool, linen and silk, and strengthening brand building and R & D capabilities.

Zhu Hongren also said that although the textile industry had been affected, it was not hurt. Therefore, both enterprises and government departments should establish confidence, strategic thinking and overall concept, and seek development in difficulties.