Spinning Enterprises Cost Is Expected To Reduce Direct Subsidy Policy Or This Year.

< p > China's < a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > vice president of the Industrial Federation Sun Ruizhe told China Securities Daily reporter that the cotton purchase and storage policy is expected to make adjustments this year, that is, direct subsidy for cotton farmers.

The upcoming Cotton Conference in Xinjiang will further discuss the policy, and Xinjiang is expected to become the first pilot area.

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< p > analysts pointed out that the adjustment of the policy of storage and storage means that the cotton reserves will gradually fade out of the cotton trading market, and the cotton trading and circulation links will be more dependent on market supply and demand.

The above policy will not harm the textile "a target=" _blank "href=" //www.sjfzxm.com/ "> clothing" /a "industry while ensuring the interests of cotton farmers. The textile and garment industry is expected to get cheaper raw materials in the future.

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< p > < strong > direct subsidy policy or promulgated this year < /strong > < /p >.

< p > "direct subsidy cotton farmers are expected to pilot in Xinjiang, the main producing area of cotton, and gradually spread throughout the country."

Sun Ruizhe told China Securities Journal reporter.

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Liu Xiaonan, deputy director of the economic and Trade Bureau of the NDRC, recently said at the China International Cotton Conference that the NDRC and the relevant departments are studying how to further improve the regulation mechanism of the cotton market and explore a long-term mechanism to promote the long-term and stable development of the cotton industry in P.

He also revealed that the state is studying relevant measures to ease the distortion of the cotton market caused by the purchase and storage policy.

The industry expects that next year's cotton purchase and storage policy adjustment is a big probability event, or 2013 will become the "ending" of cotton purchase and storage.

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< p > authoritative sources have revealed that in order to establish a long-term regulation mechanism, relevant departments of the state have begun to study relevant measures, so as to make the purchase and storage a supplementary tool for the market, and the policy of direct subsidy to cotton farmers is expected to come out.

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< p > Zhuo Chuang Information Analyst Sun Liwu believes that from the national perspective, the direct subsidy policy is not difficult to implement because of the scattered area and unclear area.

In view of the development of domestic cotton market, the policy of purchasing and storage will come to an end, and the policy adjustment is inevitable in 2014.

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< p > from the cotton storage and storage situation in 2012, the actual storage volume was 6 million 620 thousand tons, of which 4 million 210 thousand tons in Xinjiang and 2 million 410 thousand tons in the mainland.

Cotton accounts for 89% of the total cotton output in the year.

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< p > with the rapid increase of total cotton storage and storage, the inventory risk is being amplified.

Insiders said that the current state reserve inventory cotton is equivalent to the amount of textile industry used in China for one year.

If we add the storage in 2013, the total volume will exceed 13 million tons.

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< p > Sun Liwu told the China Securities Journal reporter that the simple purchasing and storage policy played an important role in protecting cotton farmers and stabilizing domestic cotton prices, but it also led to an imbalance in the supply and demand of market resources and a big difference in cotton prices at home and abroad, leading to a decline in profits of domestic textile enterprises.

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< p > < strong > the cost of spinning enterprises is expected to decrease < /strong > < /p >

< p > at present, the cost of cotton raw materials accounts for 50%-60% of fabric cost in textile and garment enterprises.

The reduction of circulation cotton and the uplink of cotton prices have become an important factor to weaken the export competitiveness of textile enterprises.

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< p > in order to reduce the pressure brought by high cotton prices to cotton spinning enterprises, the proportion of import quotas issued by 3:1 was implemented in 2013. That is to say, cotton spinning enterprises must purchase 3 tons of domestic cotton in order to get 1 tons of imported cotton quotas, but only some cotton spinning enterprises with competitive qualification can enjoy them, and there is a time dislocation between the quotas and the demand for raw materials for textile and garment enterprises.

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< p > Sun Liwu said that adjusting the purchasing and storage policy will help the formation of the market price mechanism of cotton and slow down the plight of the textile and garment industry.

In addition, cotton import quotas and other related policies will also be synchronized.

The guarantee of cotton raw materials will help textile enterprises to reduce external dependence and obtain more cheap raw materials from the country.

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< p > however, although there is an adjustment in the policy of reserve and storage, the purchase and storage of cotton will still be implemented in 2013.

Liu Xiaonan said recently that the new cotton standard will be implemented in the new year, and the new price difference and pricing method will be announced as soon as possible.

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< p > according to the survey carried out in the middle of May by the national cotton market monitoring system, the whole country sowed 70 million 809 thousand mu, which decreased by 2 million 432 thousand mu compared with the same period last year, a decrease of 3.3%.

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