The Policy Of Cotton Enterprises Running On Thin Ice Is Really A "Broken Heart".

2015/2016,

The output of cotton is about 3 million 500 thousand to 3 million 700 thousand tons, the output of cotton in the mainland is about 1 million to 1 million 100 thousand tons, domestic consumption is about 6 million to 6 million 600 thousand tons, and the pattern of domestic cotton production shortage has already been formed. The gap between production and demand needs to be imported to make up with the sale of national cotton and cotton. If the cost of imported cotton rises or the national cotton store is not sold in a timely manner, the domestic cotton price may increase in the future.

At present, cotton companies are reluctant to increase their stocks of cotton and their products, mainly because the national cotton reserves will start selling in April this year.

Because of the large number of national cotton reserves, the total volume is as high as 10 million - 11 million tons, which can fully meet the domestic cotton market consumption for about a year and a half.

Therefore, even if the inventory of raw materials and products of cotton is very low, enterprises

Money can earn, and cotton companies still dare not increase their inventories.

Before the huge inventory of cotton stored in the state has not been digested, it is difficult for the domestic cotton prices to be determined by the market.

Because before the sale rules are promulgated, enterprises will be damaged if they pay no attention.

Since the implementation of the cotton purchase and storage policy, the domestic

All the way up, and soon exceeded the cost of imported cotton.

Although the implementation of the purchase and storage policy protected the interests of cotton farmers to a certain extent and stabilized the market prices at the early stage of implementation, however, due to the timely adjustment of market prices, domestic cotton prices continued to rise after exceeding the cost of imported cotton. At the highest price, the price of the cotton reached a few thousand yuan, leading to the influx of large quantities of imported cotton and their products into the domestic market. Most of the domestic cotton entered the national treasury, which resulted in many cotton downstream enterprises unable to bear the high cost, or to close down or shut down or move out.

In 2014, the state decided to implement the target price policy in Xinjiang cotton area. Without the support of purchasing and storage policy, domestic cotton prices dropped rapidly from 30 thousand yuan per ton to the current 10 thousand yuan, and some cotton enterprises suffered a lot because of the large inventory of cotton and their products, and the cotton prices continued to fall.

It is understood that last year, the number of national cotton reserves was about 1 million 600 thousand tons, and the actual turnover was less than 70 thousand tons, mainly due to higher selling prices.

The market expects that the number of state-owned cotton dump sales this year will be around 2 million tons, and the selling price may be close to the market price.

Due to the current market's lack of bottomless sales volume and the lack of effective recovery of market demand, cotton manufacturers are afraid to act reckless in production and operation before the sale of state-owned cotton stores.

Due to the low subsidies for cotton planting, and the purchase price of seed cotton market has not reached the psychological expectations of cotton farmers in recent years, Hebei, Shandong, Hubei, Henan and other mainland cotton farmers will not have strong willingness to grow cotton in the new year.

According to the survey data of farmers' willingness to grow in the producing areas, the cotton planting area continued to decline in the mainland this year. It is a foregone conclusion. Even if the yield per unit area increases during the cotton production in the future, it will not be able to fully compensate for the loss of the total production caused by the decline of the area.

Under the stimulation of the market target price higher than the psychological expectation announced recently, farmers in Xinjiang cotton area have strong desire to grow cotton. It is estimated that the cotton planting area in Xinjiang will not change much this year.