Different 2019 Cotton Market Or Big Action

After entering the March, there are frequent news about the national related policies, and there are new changes in the development of cotton spinning industry.

On the morning of March 5th, the two session of the thirteen National People's Congress was opened, and Premier Li Keqiang of the State Council made a report on the work of the government.

The report clearly pointed out that: deepen the value-added tax reform, the manufacturing industry and other industries 16% of the current tax rate to 13%, the pport industry, construction industry and other industries, the current 10% tax rate dropped to 9%, to ensure that the main industry tax burden significantly reduced.

As far as yarn enterprises are concerned, the cost of purchasing raw cotton can be saved by 300-500 yuan / ton after tax reduction.

Therefore, the tax reduction will undoubtedly help cotton textile enterprises to save operating costs, and provide a guarantee for the development and competitiveness of the entire textile industry.

On March 11th, Wang Wei, deputy general manager of the National People's Congress and Shanghai textile decoration Co., Ltd., proposed to deepen the reform of the quota management of imported cotton during the two sessions, and explore a new mode of "government guidance + platform support + market-oriented operation".

In particular, it points out that, under the premise of basically maintaining the existing policy, that is, to maintain the two modes of enterprises applying for more than 50 thousand spindles and designated import of state trading enterprises, and to allocate a certain amount of import quotas from the total quota annually to small and medium-sized textile enterprises with a production scale of less than 50 thousand spindles without the qualification to declare separately, and to carry out a pilot project of "centralized management of imported cotton quotas" for small and medium-sized enterprises.

This may be a new direction for the quota reform of imported cotton in the future, and will benefit the whole cotton textile industry.

In recent years, there has been more and more reform on the import quota of cotton. Under the current situation of cotton production and demand contradiction, it is imperative to increase the effective supply of cotton.

With the decline of reserve cotton stocks, whether the quota should be issued and the demand for small and medium textile enterprises should be taken into account when the quota is issued, the more effective quota implementation mechanism should be expected and considered.

Recently, there are various conjectures about the storage of cotton in the market. This reflects the market's demand for cotton reserves and the recognition and dependence of regulation policies.

The author believes that whether or not to turn out, the role of reserve cotton in stabilizing the market will not change.

From this point of view, there is no need to overlook the conjectures about cotton reserves.

In addition, 2019 is the last year for Xinjiang cotton target price to be implemented for three years. The target price setting this year will have a far-reaching impact on the future development of cotton market.

I believe that the policy of boosting the healthy development of the cotton textile market will gradually come down. This 2019 is worth the industry's expectation.