Xinjiang: Ending Of Cotton Purchase Credit

Recently, Xinjiang branch of Agricultural Development Bank of China realized "double zero settlement" in 2020 cotton purchase loan, marking the successful completion of the bank's 2020 cotton purchase credit work.

In 2020, Xinjiang branch of Agricultural Development Bank of China will give full play to its role as the main channel of cotton purchase funds, and provide a total of 42.5 billion yuan of cotton purchase loans to 143 enterprises, and support the purchase of 3.57 million tons of cotton, accounting for 64% of the total cotton production in Xinjiang. Since this year, the Xinjiang branch of Agricultural Development Bank has taken various measures to help agricultural sales and effectively safeguard the interests of cotton farmers.

Xinjiang branch of Agricultural Development Bank of China actively promotes the "hedging loan" business of cotton, combines the financial instrument of cotton futures hedging with cotton sales, gives full play to the positive role of futures market in finding prices, guiding the market and avoiding risks, and helps enterprises broaden sales channels and speed up sales progress. By the end of July, 8210 cotton futures standard warehouse receipts had been registered and generated by on-site and off-site value preservation and loan enterprises, which helped enterprises make a profit of nearly 500 million yuan.

The bank makes overall use of such business forms as "warehouse receipt loan" for cotton and cotton yarn to promote the connection between cotton acquisition and production and sales of textile downstream enterprises, and revitalize the inventory of cotton and cotton yarn. We have successively supported a number of downstream companies in the industrial chain to effectively solve their unsalable problems and improve the liquidity of the whole cotton industry chain. At the same time, we will provide preferential interest rate to industrial chain enterprises, give priority to guarantee in terms of funds, and give priority to acceptance in process, so as to effectively reduce costs and bring tangible benefits for enterprises.

In addition, Xinjiang branch of Agricultural Development Bank of China has established a good communication mechanism with enterprises through visits, discussions and other ways, helping enterprises to conduct rational analysis and forecast of the market and guide them to operate steadily. According to the situation that the enterprise has implemented the sales contract, formulate the balanced sales plan, focus on the promotion and loan collection and inventory supervision of key enterprises, establish the sales loan repayment account, and ensure that the balanced sales plan is implemented and the loan is recovered on time.

(source: Xinjiang Daily)