There Is Still Some Imperfections In The Storage Cotton Production Process.

This year is the third year of cotton target price subsidy pilot in China. The mechanism that the market plays a decisive role in the allocation of cotton resources has been supported by all aspects of the cotton industry chain, and the policy of round out of cotton reserves has also been improving and the details are improving continuously.

Overall, the development of China's cotton industry is improving.

At the 2016 Cotton Industry Development Summit Forum, Yao Mingye, general manager of China Cotton Storage Management Corporation, said that the healthy development of the cotton industry is inseparable from the cotton reserve mechanism.

The mechanism will play a more important role in the domestic cotton market.

In the textile industry chain, cotton reserve is a link between the preceding and the following. It can not only protect the interests of cotton farmers and stimulate the enthusiasm of planting, but also play a regulatory role in China's cotton market, and prevent the cotton price from fluctuating greatly and bring adverse effects to the cotton industry.

Therefore, the cotton reserve regulation mechanism will continue in a certain period, but in the future

The direction of institutional reform should be to highlight the accuracy and timeliness of regulation.

Usually, cotton will naturally decrease after storing for 3 years or so.

In this regard,

The company will establish a cotton reserve management mechanism that is more suitable for market economy, and will rotate cotton reserves in a certain proportion.

In accordance with the principle of same quality and quantity, we should make full use of two international and domestic markets, sell Chen cotton to buy new cotton, rotate prices and market prices, avoid the quality loss caused by the reduction of cotton reserves, and further optimize the stock structure of cotton reserves to meet the market demand for high-quality cotton.

In addition, Yao Mingye said that the cotton reserve policy played a "reservoir" role in regulating market supply and demand. However, administrative measures are still in use and lack of legal norms.

Next, the China central storage and cotton general company will suggest that the relevant departments of the state accelerate the legislation of reserve cotton, study and formulate the regulations on the management of central cotton reserves, so that the work of reserve control can be followed and followed by rules, so as to realize the legalization, standardization and scientification of the regulation of reserves, and to establish a more complete mechanism for the cotton market.

Reserve cotton wheel normalization to reduce the concentrated impact of the market, and the improvement of the rotation policy has also made the spinning enterprises more popular with the reserve cotton. The current situation of the hot cotton turnover is the best proof.

However, with the advance of the rotation work, the details of the cotton packing process have been exposed gradually, especially the issue of the storage of cotton reserves has once again become the focus of textile enterprises' "Tucao".

The formulation of the national cotton reserve policy has given full consideration to the current predicament and the future development direction of the cotton industry. The formulation of the price has opened the linkage channel of the domestic and international cotton prices, which has led the domestic cotton price to be in line with the international cotton price and reduced the cotton price difference at home and abroad.