The industry calls for the start of "direct subsidies" for cotton

Recently, the 2013 China International Cotton Textile Conference and the China International Textile Raw Material Market will be held in Nanjing. Hundreds of companies across the country will gather in Nanjing. Companies that have been dragged down by the domestic and international Khmer spreads have invariably pointed their finger at the current cotton system and called for the launch of "direct subsidies" for cotton. With the precondition of protecting the interests of farmers, they have liberalized market competition.

Since last year, small and medium-sized textile enterprises have closed their doors, resulting in 100,000 people suffering from unemployment. But for the time being, there is no other way. This year, the issue of China’s cotton policy is still “hanging”. According to the “2013 Preliminary Cotton Storage and Receipt Plan,” this year is business as usual. The state purchases reserve cotton from farmers for more than 20,000 tons, and throws reserves around 19,000 yuan per ton.

Buyable imported cotton is subject to quota restrictions. Quotas have even been "commercialized," and some magical companies have obtained quotas and resold them. Last year, the maximum quota per tonne was over 3,500 yuan.

This year, these issues will continue to push the textile industry to the edge of the cliff. Wang Tiankai, president of the China National Textile and Apparel Industry Federation, revealed that SMEs are the first to suffer. Last year, the closure of small and medium-sized textile enterprises in China resulted in the reduction of production capacity by about 10 million spindles and unemployment of about 100,000.

The reporter learned from the meeting that the issue of cotton has attracted the attention of the state. On May 23, the Department of Economic Affairs of the National Development and Reform Commission specially convened a meeting to discuss with relevant ministries, associations, and units on the issue of “cotton direct subsidies”.

Why are the unwelcome reserve cotton companies so unwilling to see reserve cotton?

One reason is the price difference. Foreign cotton prices are 3,000 to 5,000 yuan less than the domestic price per ton. A person from the Fujian Jiada company said: “According to domestic prices, even if we do combing, we still lose money. Not to mention the general varieties.”

There is also a quality issue. The head of Hubei Xiaomian said that the cotton they bought recently had a yellowish color and each bundle was inconsistent in color. "Policies must change, and then we must continue to collect and store them in such a way that the quality cannot be controlled. Buying back can't even do ordinary yarns, and it will take up a lot of money," he said. The Jiada people in Fujian believe that the quality of reserve cotton, or because from the reserve to the auction, many departments did not strictly control.

Farmers who want to protect the policy most are not very profitable. Taking the current cotton purchasing and storage price of 20,400 yuan/ton as an example, the average price of cottonseed farmers selling seed cotton is about 4.5 yuan/kg. If the average yield per mu is 500 pounds, according to the current farmers' planting cost is about 2,000 yuan/mu, the actual cotton farmers The income is around 250 yuan/mu.

On the contrary, the gains of cotton processing companies are higher than those of farmers. According to the provisions of the cotton temporary storage and storage system, only the processed lint is used instead of the seed cotton of the farmers. Taking cotton storage and storage price of 20,400 yuan/ton as an example, the average price of cottonseed farmers' sales of seed cotton is handed over to cotton processing enterprises at 4.5 yuan/kg, and cotton processing companies purchase seed cotton to processing into lint (processing cost is 900 yuan/ton). The market price of lint cotton is approximately 19,500 yuan/ton, and that of cotton processing enterprises is approximately 1,000 yuan/ton.

The industry calls for a breakthrough in the reform of the cotton system. Wang Tiankai said that at present, a huge "cotton knot" binds the textile industry. The industry's biggest hope is that China's cotton system reform has recently made breakthroughs.

“The protection of this protection is good. We strongly support the protection of farmers, but we must also let go of the release. Let the market regulate itself. To protect farmers, the state can directly subsidize farmers, and the subsequent procedures follow the market mechanism. If half of the leaders of the enterprises go to 'plumbing' cotton (looking for imported cotton quotas), where is there still energy to engage in technological transformation and management upgrades? Under the temporary purchasing and storage policy, cotton and cotton yarn products from Pakistan and India have flocked. The SMEs are not convinced by the low cost impact on our SME market, because this is unfair competition, and their withdrawal is very helpless. Textile is a mature industrial chain. To participate in international competition, close the door and open it up. This is The next step in the cotton spinning industry is to work hard,” he said.

However, in the face of eager expectations in the industry, yesterday, Zhu Hongren, spokesperson and chief engineer of the Ministry of Industry and Information Technology stated that there is no “timetable” for the introduction of the New Deal.