Difficulty In Selling Cotton Aggravate Panic Among Cotton Farmers

According to the cotton warning system of the China Cotton Association, 90% of the cotton has been picked up in the whole country, with an increase of 2% over the same period, while the sales volume accounts for only 33% of the picking amount. The progress has dropped by 24% compared with that of the previous year.

China Cotton Association believes that textile demand and insufficient storage and purchase lead to a continuous decline in cotton prices.

The Association believes that since the launch of the new cotton market this year, affected by the global financial crisis, textile production and marketing have been sluggish, exports have been blocked, and the backlog of products has led to a continuous decline in cotton prices, and cotton acquisition is facing unprecedented difficulties.

The state started regulation and control measures, and on the basis of the 220 thousand tons of Xinjiang cotton that had been stored and sold, it continued to store and store 1 million tons at 12600 yuan / ton, and began to collect and store in the mainland. It played a certain role in curbing price declines, but failed to control the decline of cotton prices.

China Cotton Association recently went to cotton research and visited cotton farmers and enterprises in the field.

Everyone reflected that the cotton purchase and storage measures failed to control the cotton price slide in time. On the one hand, the financial crisis affected the textile demand, which was the main reason.

But on the other hand, the current measures of collecting and storing, whether from the level of technology operation or quantity scale, are not enough to serve the city to save the emergency.

Because only 400 types of large bales are included in the quality inspection system reform, and the main body of circulation, especially the mainland, is still the 200 type small package cotton. Therefore, the quantity of storage and storage is limited, so it is difficult to play a regulatory role.

At the end of the year, farmers are in a mood of instability in the face of the cotton price of "down and down".

In line with the requirements of the Central Committee, such as "quick delivery, heavy punching, accurate measures and practical work", the industry suggests: 1. Take the comprehensive policy as soon as possible and start the textile industry to adjust the input tax and output tax rate of cotton textile enterprises.

The input tax rate of the purchase of cotton by textile enterprises is 13%, and the output tax rate is 17%. The difference between the 4 percentage points should be borne by the enterprises, which is not a small expense for the small profit cotton textile enterprises. The tax policy of high taxes and low taxes is obviously not conducive to the development of the industry. It is suggested that the adjustment should be the same as the input tax rate and the output tax rate, so as to lighten the burden of the textile enterprises.

Two, we should continue to increase the export rebate rate of textile and clothing.

Three, it is to increase investment in the liquidity of textile enterprises, especially small and medium-sized enterprises.

Increase purchasing and storage efforts to protect farmers' interests.

The state will continue to increase the scale of its storage and purchase. It can also announce the collection and storage of the bottom, treat the large cotton bales and the small package of cotton equally. As soon as possible, the price of the purchase and storage will be pmitted to the buyout market, which will really play a role in protecting the farmers, and at the same time, it can also stimulate the confidence of the industry so as to make the production, purchase and sale run normally.

Where conditions permit, local financial forces should be mobilized and provincial reserves should be established.

It is also possible to stabilize prices by collecting and storing electronic matching pactions.

The price of electronic matching paction is the weathervane of domestic cotton spot price.

Four. Consider cotton production next year as soon as possible to ensure stable development of cotton industry.

Cotton prices have dropped sharply this year, while grain prices have increased, resulting in a widening gap between grain and cotton prices. Next year, cotton production will probably decline significantly, and cotton will remain stable for a long time.

It is suggested that efforts should be made to increase the protection of cotton farmers. First, expand the scope of subsidies for fine varieties, achieve subsidies nationwide, and directly distribute to cotton farmers; two, implement a comprehensive direct subsidy policy for cotton farmers; three, explore the minimum cotton protection price and target price system.