In 2015, The Total Output Of Cotton In China Was 5 Million 605 Thousand Tons, And Xinjiang Accounted For 60%.

In 2015, the total output of cotton in China decreased, but Xinjiang's position as the main cotton producing area in China was further consolidated.

In December 21st, the data released by the National Bureau of statistics showed that in 2015, the total output of cotton in China was 5 million 605 thousand tons, a decrease of 574 thousand tons compared with that in 2014, a decrease of 9.3%.

A major change in the reform is the decline in planting area. Some areas that are not suitable for planting cotton are gradually withdrawing from cotton cultivation, and grain, cash crops and forage crops have become cotton substitute crops.

Adjustment is also being made.

Cotton production in the whole country has been reduced, and Xinjiang is no exception.

In 2015, Xinjiang's cotton output was 3 million 503 thousand tons, which was 174 thousand tons less than that of 2014 (3 million 677 thousand tons).

Xinjiang's cotton output accounts for 62.5% of the country's total, which is 3 percentage points higher than that in 2014.

The decrease of cotton yield was mainly due to the decrease of area.

The cotton planting area in Xinjiang decreased by 735 thousand mu compared with 2014, and decreased by 2.5%.

As the main cotton producing area in China, cotton production per unit area in Xinjiang is still higher than that in the whole country.

According to statistics,

Cotton yield per unit area is 122.6 kg / mu, higher than the national average level of 24.6%.

Xinjiang reduces cotton planting area but does not reduce cotton yield per unit area, which is in line with the state.

The purpose of target price reform.

In 2014, the state took the lead in carrying out the pilot project of cotton target price reform in Xinjiang, and explored a new mechanism for separating cotton prices from subsidies. Through the implementation of this new subsidy mode, the cotton production mode of Xinjiang was forced to reform, so that cotton could continuously concentrate on suitable cotton areas, improve the scale of cotton planting and enhance the efficiency of cotton planting.

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2015 is not easy for all links in the cotton spinning industry chain.

Cotton growers cried for cotton cultivation and worked hard all year round, and cotton enterprises shouted that the quality and quantity of the purchase were double, the processing was difficult, and the sales were difficult; the textile enterprises shouted that domestic cotton was expensive, imported yarn was fierce, cotton yarn was sold on credit, and grey cloth and clothing enterprises also shouted cloth and clothing, and the money became stock.

Every link is miserable. In the final analysis, it is closely related to the macro economic environment.

China's economy has entered a new normal, and all walks of life also need to enter a new development space.

The cotton reserve policy, which has attracted much attention from the market, should first become a pacesetter in the reform and innovation of the cotton industry. This is the first step to clarify the boundary between the government and the market.

The future cotton reserve policy should also be closer to market demand, respond to the market crisis quickly, release the explicit anticipation ahead of time, give time to the market parties, so as to better play the role of reserve cotton, and also make the national financial funds in the real needs of the industrial chain.

At present, China's economy is still in a downward channel, the fourth quarter of the data are not optimistic, it is expected that the economic downturn will continue until the first quarter of 2016.

Small things depend on themselves, and great things look at the country.

In the past year, we have seen that in order to cope with the economic downturn, the central bank has lowered interest rates 6 times. The central government has also adopted many stimulant policies, but little effect has been achieved. It also shows that the current economic problems in China can no longer be solved solely by stimulating policies. The supply side reform is needed, starting from supply and production end, and by improving the competitiveness of the productive forces and promoting economic development.

Specific to our cotton industry, we will think of cotton reserves when it comes to supply.

Recently, we received a lot of requests from our customers, hoping to know the cotton year, quantity, quality and price of the previous cotton reserves, so as to calculate the quality structure of the present cotton reserves.

Although there are some problems in the implementation of the temporary purchase and storage policy, when the domestic cotton has structural problems, people will still put their hopes on the cotton reserves.

When to turn out the cotton reserves and what price to turn out and which cotton to turn out will become the focus of attention.

During the period from July 10, 2015 to August 31st, the principle of "rotation of cotton reserves" was "to promote sustained and healthy development of industries, to guide the smooth operation of the market, to reduce the financial burden, and to improve the regulation mechanism of cotton reserves".

This has changed with the statement that the reserve policy "two guarantees and a stable" (stable cotton production, operators and cotton enterprises market expectations, protecting the interests of cotton farmers, and protecting the market supply) has changed. The state will lighten the financial burden as a principle for the rotation of cotton reserves.

There are two ways to lighten the financial burden. One is to go out at a high price, to narrow the difference between the price of the round bid and the purchase and storage price, and to reduce the direct financial loss. The two is to go out at the market price or below the market price, thereby reducing the inventory and reducing the expenditure of the state finance in the storage cost.

Predictably, under the current market situation, the high price round is obviously not feasible, and the paction will be unsatisfactory. It is also a waste of time and effort for the state to work out the plan and coordinate all the links to the final result.

On the contrary, it is low price, even in line with the international cotton price. Reserve cotton has the advantage of price and abundant resources. Under such circumstances, although the national finance seems to have lost the difference between the reserve price and the bid price, it actually not only revitalized the small and tight textile enterprises, but also promoted the recovery of cotton consumption, and also achieved the goal of eliminating inventory and reducing the financial burden.

When the market plays a normal role, the State Reserve is relegated to the second line; when the market fails, when needed, under the law and regulations, the government can control the cotton market and deploy the cotton resources by swinging the flag of the reserve, and the effect is no more than any policy.

Therefore, the policy of cotton reserves should define the boundary between the government and the market. The "collection" and "exit" of the reserve cotton should be at the same frequency as the market pulse, and there should be a complete legal framework to stipulate the timing of the reserve policy.