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For The First Time, Cotton Enjoys A Government Protective Price Of &Nbsp, And The Gap Between Supply And Demand Is Still 4 Million.

2011/4/1 10:36:00 37

Cotton Enjoys Protective Price

The industry appealed for several years.

cotton

The minimum protection limit measures will be implemented in September 2011.


In March 30th, including the national development and Reform Commission,

Agriculture

The 8 ministries and commissions, including the Ministry of finance, jointly issued the "cotton temporary storage and purchase plan for 2011", and finalized the policy of purchasing and storage in September 1, 2011 -2012 March 31st, once the standard grade lint price has been lower than 19800 yuan / ton for 5 consecutive working days.


Several respondents pointed out that this operation method and

foodstuff

Minimum

Protective price

Similar.

Calculated, after the new cotton market came into operation in September, the lowest acquisition price of standard grade seed cotton was about 4.7 yuan / Jin.


When the new cotton was just sown, the price of the bottom was announced. The government intended to stabilize the cotton planting area.

Due to concerns about cotton and grain competition, the government has not set the minimum protective price for economic crops cotton.

Cotton prices continued to slump around 2008, resulting in a continuous reduction in cotton planting area in the past two years. In the 2010 cotton year, China's cotton supply and demand gap is estimated at 3 million 500 thousand tons -400 million tons.


According to the current price estimate, when the price of standard grade seed cotton is around 4.5 yuan / Jin, the income of farmers' seed cotton can be basically equal to grain income. Therefore, the "4.7 yuan / Jin" policy base price is not high, but it is expected to achieve results, according to the current price calculation. According to the current price estimate, Shandong's cotton seed supply and Marketing Association has just completed the survey.


Policy underpinning: ensuring cotton seed area


According to the plan for the temporary storage and storage of cotton in 2011, the lock-in areas are located in 13 provinces (districts and cities) of the main cotton producing areas of China, namely, Tianjin, Hebei, Shanxi, Jiangsu, Anhui, Jiangxi, Shandong, Henan, Hubei, Hunan, Hunan, Hunan, and Hunan.


Before planting cotton, the state formulating and announces the price of temporary cotton picking and storage of cotton in main cotton producing areas. Cotton farmers and cotton enterprises can make their own production plans ahead of time. When new cotton is listed, when the market price is lower than the temporary storage price, the state will open up and store it.


The reference price of purchasing and storing is the average cotton price monitored by the two units of the national cotton market and the China Cotton Association. Once the monitoring price is lower than 19800 yuan / ton for 5 consecutive working days, that is to say, it will initiate policy purchasing and storage.

This reference price will be announced daily.


China has put cotton into cash crops, and has never enjoyed the market support policy of wheat and corn.

Du Min, a researcher at the Ministry of agriculture's Rural Economic Research Center, said that in fact, China's accession to the WTO allowed China to implement less than 8.5% of the subsidy for cotton, which is estimated to be around 5 billion -60 billion yuan per year.

Unfortunately, this subsidy is far from enough. In 2009, for example, the government only invested a total of 1 billion 300 million yuan in cotton seed subsidy.


The minimum purchase price policy of cotton was ready in 2006. At that time, the policy failed to materialize because of the disputes on the formulation and implementation of the protective price.

Close to the Ministry of agriculture analysts told me that the deeper reason is that cotton prices have been at a relatively high level, and cotton sales are tight. This makes relevant departments consider that the necessity of issuing the minimum price is not large.


Before and after 2008, cotton prices continued to slump, and the market price of standard grade seed cotton was less than 3 yuan / kg. Cotton's slow sales had damaged cotton growers' enthusiasm for cotton production.

Wang Qianjin, an analyst at the first textile network, said that a large number of cotton farmers had abandoned their cotton crops, resulting in the planting area of cotton decreased from 89 million mu in 2007 to 75 million mu in the year, and dropped by 1400 mu.


In March 2011, the national "two sessions", the draft national economic and social development plan issued by the national development and Reform Commission (NDRC) pointed out that in 2010, the yield of cotton was 5 million 970 thousand tons, which was 6.1% lower than that of the previous year, due to the partial climatic conditions and the reduction of planting area. In 2011, the national goal was to strive to reach 6 million 800 thousand tons of cotton output in the year of 2011.


A person from Xinjiang cotton and linen supply and Marketing Association said that Xinjiang has entered the new cotton planting season.

He calculated roughly, without considering the labor cost of cotton growers. The cost of physical and chemical cotton planting in Xinjiang is about 3.5 yuan per catty of standard grade seed cotton. According to this standard, the lowest price of 4.7 yuan is set low.


He predicted that the annual planting area in Xinjiang is expected to increase by about 4%.

At present, Xinjiang's cotton output accounts for about 1/3 of China's cotton output.


The Shandong cotton industry has obtained two sets of reference figures after investigation: taking into account the disaster in 2010, in the case of 410 kg of seed cotton in an acre estate, when the standard grade seed cotton sells at 4.5 yuan / Jin, the income of farmers' grain and seed cotton is basically the same; in normal years, according to the figure of 520 kg per mu, the seed cotton price of 4 yuan / jin can be kept equal to grain income.

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