Policy Pains: Cotton Processing Enterprises Timely "Steering"

This year is the implementation of Xinjiang.

Second years of target price reform, the impact of the new policy on domestic cotton market gradually emerged.

In the southern Xinjiang area, the reporter found that after the purchase and storage was changed to the target price subsidy, the downstream textile enterprises had a better life, but the cotton growers and processing enterprises in the upstream of the industrial chain had a larger deficit.

Affected by this, the future cotton planting area continues to shrink is a big probability event.

The industry believes that under such circumstances, extensive planting and production methods need to be changed.

Cotton can only be guaranteed if demand for quality is provided.

In Bazhou, Yuli County and Akesu, Kuche, Sha ya, Xin and three counties mentioned cotton planting last year. Many cotton growers complain incessantly. Losses are common, but they can not be abandoned. The cost of land reclamation is higher after abandonment.

"Last year, Weili cotton was seriously affected by the wind disaster and had to be re broadcast many times.

If we calculate the cost of picking flowers, the cost of cotton planting last year is 2300 to 2400 yuan per mu, but the yield per unit seed is less than 200 kg / mu.

Tan Yuanquan, a plantation grower in Yuli County, has more than 2000 acres of cotton fields. He told the futures daily that even after calculating government subsidies, cotton was still a lot of losses last year.

Li Jia Zheng, general manager of the Zhongliang cotton industry limited company in Yuli County, believes that the most perplexing problem for cotton growers is the high labor cost.

Local pickup has risen to 2.3 yuan / kg, which directly raised the cost of seed cotton, farmers generally do not earn cotton seed.

If the problem of high cost can not be solved, farmers' enthusiasm for planting cotton will be frustrated.

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In addition to the high cost of planting, some farmers complained that even after calculating subsidies, cotton purchase prices last year were far below the target price of 19800 yuan / ton announced by the state.

In fact, due to the statistical caliber, part of the "black land" in Xinjiang has not been included in the subsidy scope, and the subsidy funds allocated to the cotton farmers have been diluted. The actual subsidy amount is lower than the policy standard, which also has a certain impact on the enthusiasm of cotton farmers.

Some cotton farmers even said they would observe another year this year. If this is the case, they will not grow cotton next year.

Similar to cotton farmers' situation, last year many Xinjiang ginning mills could achieve breakeven.

"Last year we bought 110 thousand tons of seed cotton and 45 thousand tons of lint, and the average selling price was about 14000 yuan / ton.

Because of controlling risk,

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Last year, our acquisition and processing of cotton were slightly profitable.

Zhu Yongchao, executive vice president of Xinjiang Yikang group, believes that there are two characteristics in the domestic cotton market in 2014/2015: first, the national storage cotton on the top of 10 million tons; two, the supply of cotton exceeds demand, and the textile enterprises are more critical of cotton quality.

This puts forward higher requirements for the management of cotton processing enterprises.

In view of this situation, Zhu Yongchao said that this year's cotton purchase will take corresponding measures to control operational risks.

"The first thing is to reject high lint cotton and ensure the quality of cotton.

The second is to cooperate with farmers' cooperatives to acquire high-quality cotton from members and strictly control "three silk" from the source.

If this is done well, even if the price of cotton is raised by 500 yuan per ton, the textile enterprises are acceptable.

Finally, grading and grading ginning to meet the different needs of textile enterprises.

He said.

This view is very representative in Xinjiang cotton processing and purchasing enterprises.

Because of the lessons of last year's high price rush and the tightening of the loan policy of the Agricultural Development Bank this year, many enterprises are cautious about the acquisition of cotton this year.

Some enterprises indicated that, on the one hand, the quality of cotton should be guaranteed and the high quality could be high; on the other hand, the market situation is not very clear at the present stage, and the risk of purchasing will be controlled in the later stage.

Lv Bingzheng, general manager of cotton and Flax Company in Yuli County, also believes that if the price of cotton is slightly higher this year, the risk of purchasing processing enterprises will be great.

In particular, the first year's acquisition of cotton enterprises in Xinjiang often overlooks risk raising and acquisitions, which will adversely affect the operation of other enterprises.