Xinjiang Cotton Target Price Reform Pilot Results

The latest data show that the whole country in 2014

The total output is 6 million 161 thousand tons, of which, the output of cotton in Xinjiang is 3 million 677 thousand tons, accounting for nearly 60% of the total output of the country.

Cotton farmers' enthusiasm for improvement

This year, the state began to pilot cotton target price reform in Xinjiang.

The director of the national development and Reform Commission said that the target price was determined according to the production cost plus the basic income. When the market price is lower than the target price, the state will grant subsidies to producers in the pilot area according to the difference between the target price and the market price, the planting area and the output.

This year's cotton target price of 19800 yuan per ton can compensate the cost of cotton production in the pilot area and ensure the basic income of farmers.

Current target prices in Xinjiang

At the stage of implementation, the first part of subsidy is being delivered according to the area subsidy, and the amount of subsidy will be released in succession, and the enthusiasm of farmers is very high.

"A new phenomenon has occurred in cotton harvesting this year. Farmers voluntarily use mechanical picking to reduce costs and increase the number of people who voluntarily request the machine to pick.

Machine mining will be the main trend. "

Liang Dongya, vice president of Xinjiang production and construction corps cotton association, said.

Good cotton is in short supply.

After the implementation of the new policy this year, the situation of low cotton quality has also changed.

Xiao Yuqing, chairman of Xinjiang cotton industry group, said: "after the implementation of the target price subsidy policy, the quality of the cotton we collected is greatly improved, and the 2 grade cotton accounts for more than 80%."

Xiao Yuqing said.

"Since the implementation of target prices in the first year, every member of the Xinjiang production and Construction Corps has achieved 3 groups of quality. Whether the cotton picking machine or machine picked cotton has been greatly improved this year, it has 26 millimeters last year.

This year, most of the machine picked cotton reaches more than 28 millimeters, and hand picking cotton reaches more than 28.5 millimeters.

Liang Dongya said.

Gao Fang, vice president of China Cotton Association, told reporters that as of December 11th, 2014 cotton annual national public inspection volume of 3 million 253 thousand tons, of which 2 million 823 thousand tons in Xinjiang, the notary inspection results showed that the overall quality indicators were better than last year, the average level reached 2.54.

She said that from the perspective of cotton quality, the proportion of cotton directly sold by cotton growers increased this year, and the quality of cotton in the new year was significantly improved, and the quality consciousness of cotton purchasing and processing enterprises was enhanced.

Nevertheless, the quality of cotton can not fully meet the needs of textile enterprises.

Zhou Yejun, director of Wuxi No.1 Cotton textile mill, said that enterprises can try to sign orders with the source, so that the choice of cotton varieties will conform to the market demand and make a balance between cotton output and quality. At the same time, we should strengthen management and make appropriate adjustments to cotton inspection parameters.

Price fluctuations will become normal

With the end of cotton temporary purchase and storage policy, domestic cotton prices began to fluctuate.

Zhang Xianbin, director of commodity division of the economic and trade division of the national development and Reform Commission, said that after the pilot project of cotton target price reform was carried out, the cotton market was lack of vitality. In the future, price fluctuation is the new normal, and the tolerance for volatility should be enhanced.

Some enterprises worry that the sale of reserve cotton will bring a new round of impact to the market, and the cotton will not dare to accept it.

In this regard, Zhang Xianbin said that cotton reserves will not be released until next March.

When to launch will be decided according to the new cotton sales progress, market price and supply and demand situation.

At present, the domestic cotton market is still at a low ebb, and relevant experts have analyzed that the turning point of the cotton market price will appear next year in 3 and April.

Zhang Xianbin said that the state will use macro control measures to prevent abnormal and excessive fluctuations in cotton prices, and use the regulation of reserve imports and exports to prevent price ups and downs.