Domestic Need To Develop Specialized Cotton Cooperatives

Why is the market not strong when cotton is picked?

Industry insiders believe that the hand of cotton regulation is not in place.

Cotton enterprises can't afford it, cotton farmers can't afford it

In previous years, entering October, the cotton sales season came. This year is a different story.

"In the past, as soon as cotton was picked, cotton vendors followed. This year, there were few cotton vendors. Occasionally, they came to explore the market and did not clinch a deal." On the 18th, Zhou Jiahua, a farmer in Group 1, Yongfeng Village, Banzhudang Town, Gong'an County, said that more than 2000 jin of seed cotton picked before the National Day was piled at home and could not be sold. Now, he dare not hire people, so he can only cool the cotton in the field.

"Cotton enterprises dare not accept the cotton because the quality of the cotton has declined and it does not meet the national standards for collection and storage. At present, the average purchase price of seed cotton is 4.18 yuan, which is too cheap for cotton farmers to sell." The head of the Jingzhou Cotton Association said that the cotton has been weighing for more than two months, and the trade is cold.

According to the statistics of the provincial cotton association, 60% of cotton in the province has been picked, but less than 20% has been sold, significantly lower than the previous year.

"The slow progress of cotton sales has a lot to do with the adjustment of the detailed rules for cotton collection and storage this year." Industry insiders believe that the new national standard of cotton is strict, which makes it more difficult for cotton enterprises to deliver and store cotton.

For example, a batch of 120 bales of cotton can not be delivered for storage if two of them are found to be adulterated with foreign fibers. Another objective factor is that the cotton base color in the Yangtze River basin is yellow, especially in this year's drought, and the proportion of light spot dirty cotton is large, so the delivery and storage of cotton is difficult. In addition, the financing cost of cotton enterprises is high this year, and the newly established deposit margin has increased from 300 yuan/ton to 500 yuan/ton, increasing the cost of cotton enterprises' storage.

Cotton enterprises are trapped in the new national standard, cotton farmers are trapped in low cotton prices, and the cotton market is in an awkward situation of "unable to afford to buy or sell".

Excessive inventory leads to lower cotton prices

The country has implemented temporary cotton storage since September 1, 2011, due to the instability of the cotton market.

In 2010, the price of seed cotton once reached 7.5 yuan/jin, when the cotton market was hot. Good days are not long. Since March 2011, the price of cotton has turned around and dropped to 4 yuan in May. Cotton enterprises that did not have time to disclose their stocks suffered a lot, and cotton farmers had to ship the stored cotton at a low price.

Why is there such a roller coaster market? Because the price of imported cotton is low.

"In the past two years, the international cotton price is about 3000 yuan/ton lower than the domestic cotton price." Industry insiders said that because of the price, China's cotton lacks market competitiveness, not only the export is blocked, but also the domestic market share is lost, spin Enterprises are keen to strive for import quotas.

At present, the national purchase and storage price is 20400 yuan/ton, which is 2000 yuan/ton higher than the spot price. As a result, domestic cotton can only take the way of purchase and storage, and the inventory increases. In recent years, various chemical fiber substitutes have emerged one after another, and the demand for cotton yarn has decreased. Therefore, cotton destocking is weak, and cotton prices have declined.

Due to low comparative benefits, the cotton planting area in our province has gradually decreased in recent years. This year, the cotton area of the province was 6.78 million mu, down 4.4% from the previous year.

Direct cotton supplement is imminent

As we all know, cotton has a long growth cycle, time-consuming, low degree of mechanization, is greatly affected by natural disasters and the market, and cotton farmers are not active in production.

It is estimated that the break even point of seed cotton is 4.2 yuan/jin. Judging from the current market price, cotton is like a chicken rib to cotton farmers.

In the face of the cotton market downturn, the provincial cotton association has been looking for good measures.

"At present, if the delivery and storage channels are not opened, the price of seed cotton will further decline. It is necessary to speed up the progress of cotton storage and warehousing." The provincial cotton association said that this year is the first year of the implementation of the new national standard for cotton, and strict implementation is understandable, but we must face up to the reality of cotton production reduction and quality degradation. Take our province as an example, appropriately relax the storage conditions, and include all cotton with a length of 26mm and a color grade of yellowish dyed cotton and light spot dirty cotton into the storage range.

Cotton concerns the national economy and the people's livelihood.

"It is urgent to establish a long-term mechanism to promote the healthy development of cotton," said the insiders, "In fact, the state subsidizes 3000 yuan per ton of cotton for purchase and storage, but cotton farmers do not enjoy benefits and are consumed by various intermediate links. We can learn from foreign direct subsidy policies for cotton farmers. China's grain is directly subsidized to farmers, and cotton can also follow suit. The establishment of a direct subsidy mechanism for cotton can ensure the income of cotton farmers, stabilize cotton planting area, and maintain the self-sufficiency rate of cotton in China."

At the same time, improve the cotton early warning system to provide timely and accurate information for cotton farmers, cotton circulation enterprises and textile enterprises. It is of practical significance to improve the scientific and technological content of cotton planting, improve the drying conditions of cotton, and develop professional cotton cooperatives.