Xinjiang Textile Enterprises In Xinjiang'S Mianshan Are Getting Harder And Harder To Survive

At present, it is the cotton harvest season in Xinjiang spin For enterprises, this is not a happy event. In the context of the upside down of cotton prices at home and abroad, Xinjiang textile enterprises, which are located in the cotton mountains of Xinjiang, are finding it increasingly difficult to survive.

Statistics from the Xinjiang Uygur Autonomous Region Economic and Information Commission show that half of Xinjiang's textile enterprises above designated size lost money from January to August this year. Xinjiang textile enterprises can no longer afford the high price of Xinjiang cotton, and enterprises are restricted by quotas if they want to get cheap imported cotton from abroad.

"Xinjiang cotton is too expensive to afford," Wang Shaoming, deputy general manager of Xinjiang Yida Textile Co., Ltd., said helplessly on October 24.

Although Xinjiang is a major cotton producing region in China, with cotton output accounting for more than 50% of the country's total, the current price of domestic cotton and imported cotton is inversely linked, forcing textile enterprises sitting on the cotton pile in Xinjiang to find ways to "engage" in imported cotton to maintain production. Otherwise, enterprises will be unprofitable, or even lose money.

Wang Shaoming calculated a sum for the reporter, "The American imported cotton we bought, including tariff and freight, was pulled from across the ocean to Xinjiang, which is more than 3000 yuan cheaper than a ton of local cotton in Xinjiang. The profit of the textile industry itself is thin. Do you think the enterprise is using imported cotton or Xinjiang cotton to make a profit?"

In the cotton inventory area of Xinjiang Yida Textile Co., Ltd., the reporter saw that the cotton outer package with neat yards showed that the cotton came from the United States. "Almost half of the cotton used for spinning now is American cotton and half is Xinjiang cotton," said Wang Shaoming.

Similarly, Xinjiang Huafu Textile Co., Ltd., located in Aksu, the main cotton producing area of Xinjiang, also says that it cannot afford to use Xinjiang cotton. "We are trying to import cotton from Central Asian countries, including Kyrgyzstan and Kazakhstan." Wu Xinhua, head of the office of Xinjiang Huafu Textile Co., Ltd., said.

"If all Xinjiang cotton is used for processing, it can be said that the enterprise has no profit at all. The cost of raw materials in the textile industry accounts for a large proportion. The cost of raw materials cannot be reduced, and the spun yarn will have no competitive advantage in the market." Wu Xinhua said.

Statistics from the Economic and Information Commission of Xinjiang Autonomous Region show that 105 textile enterprises above the designated size in Xinjiang suffered losses of 169 million yuan from January to August this year due to the inverted cotton prices at home and abroad. 56 enterprises suffered losses, with a loss area of 53.33%.

In fact, losses have actually appeared since 2010, and have now lasted for two or three years, "At present, the price of domestic cotton is 19000 yuan per ton, while the CIF price of imported cotton is only 14000 yuan per ton, with a price difference of 5000 yuan per ton. The gap between domestic and foreign cotton prices is so large that even if textile enterprises try to innovate technology and save costs, they can't make up for it," said the relevant person in charge of the textile office of the autonomous region.

It should be said that the current situation of Xinjiang textile enterprises is the same as that of mainland textile enterprises, and the cotton price inversion not only affects textile enterprises, but also affects clothing Enterprise, domestic textile Brand clothing Foreign trade export orders are not well received, competitiveness is declining, and a large number of foreign trade orders flow to low-cost countries such as South Asia and Southeast Asia.

The outflow of foreign trade orders ultimately affects the textile industry in Xinjiang, which is at the front end of the textile industry chain. At present, the textile industry in Xinjiang is facing unprecedented difficulties. The textile enterprises are underoperating and the economic benefits are declining.

In order to survive, the main business of Xinjiang Yida, which still sticks to the textile industry, began to manufacture and sell ready-made clothes, and its high-end ready-made clothes have entered the United States and the United States Department Store; Some domestic textile enterprises have simply expanded to the high profit real estate development field.

"Now we are still suffering. Although spinning does not make money, we dare not stop production. Labor wages are getting higher and higher, and it is increasingly difficult to recruit textile workers. We are afraid that if we stop work now and resume production in the future, we will not be able to recruit people." Wu Xinhua, the office director of Xinjiang Huafu Textile Co., Ltd., said.

Of course, not every textile enterprise can "get" imported cotton like Xinjiang Yida Textile and Xinjiang Huafu Textile. "The state imposes quota restrictions on imported cotton. The quota ratio is 3:1, that is, domestic textile enterprises must purchase 3 tons of domestic cotton to have a quota of one ton of imported cotton," said the relevant person in charge of the autonomous region textile office.

Xinjiang is the main cotton production area in China, so the quota allocated is more limited. Only enterprises that spin more than 50000 spindles annually can get the import quota.

Domestic cotton policy leads to cotton price inversion

In fact, China's cotton policy is the root cause of the price inversion of cotton at home and abroad.

For those engaged in cotton related industries, no one will forget the crazy cotton in 2010. At that time, the highest price of cotton was 13 yuan per kilogram, which was the highest in history.

However, this myth only lasted for one year, and cotton prices plummeted in 2011. In order to protect the interests of cotton farmers, the state has decided to implement the policy of relying on the market to collect and store cotton. In 2011, the purchase and storage price of cotton was 19800 yuan/ton, and 20400 yuan/ton in 2012. This year, it continues to stabilize at 20400 yuan/ton.

The purpose of cotton purchase and storage is to stabilize market price fluctuations and protect farmers' interests and enthusiasm for cotton planting. However, three years after the implementation of the policy, it has been in a dilemma. On the one hand, due to the high price of the domestic cotton stored in the market, the price of the domestic cotton sold in the market is also high, which makes the cotton spinning enterprises can not afford to use domestic cotton; On the other hand, the huge amount of cotton reserves also put a huge burden on the national finance. The reserve warehouse is full of cotton, which is difficult to sell.

"Everyone knows that the price of cotton temporarily collected and stored by the state is high, so the cotton processed by Xinjiang cotton processing enterprises want to sell to the state reserve to make money. This artificially produced price not only seriously deviates from the market, but also forces the price of cotton in normal circulation on the market to rise." The relevant person in charge of the textile office of the autonomous region said frankly that China's cotton policy has distorted the market at present.

According to the analysis of various statistical data, the insiders believe that the current inventory of national cotton reserves is equivalent to the annual consumption of Chinese textile enterprises. If we add the cotton stored in the new market this year, the total is likely to exceed 13 million tons.

Such a huge inventory, like a huge barrier lake, hangs over the top of China's cotton industry chain. The industry even predicted that if the cotton stocks were not cleared in time, the warehouses for storing cotton would be bursting.

The country may pilot cotton planting and direct subsidy in Xinjiang

How to rationalize China's cotton price system to ensure that both cotton farmers can grow cotton and textile enterprises can earn money.

According to the Economic Information Daily, the National Development and Reform Commission has recently solicited opinions on the cotton system reform plan, or will directly supplement cotton in Xinjiang as a pilot project. The so-called direct subsidy is like planting wheat, rice and other crops, and the national finance provides subsidies to farmers every year.

"The state's purchase and storage of cotton is a good thing in itself, but the result of this policy is that only cotton can be harvested, which is bound to cause problems; the targeted direct subsidy for cotton planting is also suitable for China's national conditions. First, stabilize the income of cotton farmers, and leave the cotton price to the market to decide." Sun Guoqing, the deputy general manager of Xinjiang Agricultural Means of Production Group Cotton Co., Ltd., believes that the state's efforts to support the market are relatively simple and one-sided measures, which cannot be sustained for a long time.

According to Sun Guoqing, in order to reform the cotton system, relevant national policy makers have visited Xinjiang for research some time ago.

It is reported that at present, the entire industrial chain engaged in cotton planting, cotton textile and clothing processing and sales in China has more than 100 million employees in related industries. The cotton system reform must take into account the interests of the entire industry, so the formulation of policies must also be considered carefully.

With regard to the news that Xinjiang will pilot direct subsidy of cotton, the reporter verified with the Development and Reform Commission of the Autonomous Region and the Development and Reform Commission of the Corps respectively, "This news has been seen on the Internet, but the official document has not been released to us." The relevant person in charge of the Development and Reform Commission of the Corps said that the pilot direct subsidy in Xinjiang will be good news.

"The policy is being formulated by the National Development and Reform Commission, and we still don't know how to pilot direct cotton subsidies," said the relevant person in charge of the Autonomous Region Development and Reform Commission.