Xinjiang Will Become A Direct Subsidy Policy For Cotton.

The policy of < p > a href= "//www.sjfzxm.com/news/index_c.asp" > cotton storage and storage < /a > has become one of the important factors to weaken the export competitiveness of textile enterprises in 2011, and this policy will change.

Reporters yesterday learned from the sources, the relevant state departments have begun to study measures, using direct subsidy instead of cotton purchasing and storage policy, reducing the government's intervention in cotton prices is also under discussion.

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< p > after the cotton price has experienced a sharp fall in 2010/11, the 8 ministries and commissions of the national development and Reform Commission and the Ministry of Finance jointly launched the temporary cotton purchase and storage policy.

In this regard, Sun Liwu, an analyst with information cotton industry, said that the state has continuously launched an unlimited number of purchasing and storage programs, which is conducive to stabilizing the cotton market to a certain extent. Even in the 2012 year, the price of cotton has increased by 4.4%. However, the excessive monotonous use of the policy of purchasing and storage has led to the imbalance of supply and demand of market resources.

The purchase and storage indirectly widen the price difference between domestic and foreign cotton. Due to < a href= "//www.sjfzxm.com/" target= "_blank" > textile < /a >, the raw material purchasing channel of the enterprise is mainly auction national storage cotton, leading to the domestic textile enterprises export competitiveness and profits have dropped sharply.

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< p > for this reason, many textile enterprises, such as a href= "//www.sjfzxm.com/" target= "_blank" > clothing < /a >, said at a forum held earlier this year, because domestic and foreign prices were seriously upside down and imported cotton needed quotas, domestic textile and garment enterprises were under great pressure.

Xia Lingmin, vice president of the China Federation of textile industry and chairman of the circulation branch, suggested that the production and circulation of cotton should be marketization instead of regulation by import and export quotas and import quotas.

For cotton farmers, the direct subsidy policy can be modeled on the European and American countries.

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< p > however, the < a href= "//www.sjfzxm.com/news/" > storage and purchase policy < /a > will still be implemented in 2013, so the a href= "//www.sjfzxm.com" > cotton > /a > every link needs to be well prepared.

Zhuo Chuang believes that although there is some difficulty in the implementation of the direct subsidy policy in the late stage, the policy adjustment is inevitable in 2014, considering the development of the domestic cotton market.

For the direct subsidy policy, Chuang Chuang said that direct subsidy is a very important measure for stabilizing cotton production in the late period. However, the cotton planting in the mainland is decentralized, and it is difficult to implement. The Xinjiang area can be pilot first.

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< p > direct subsidy policy promotes a href= "//www.sjfzxm.com/news/" > cotton price < /a > from policy orientation to market regulation, and good for textile enterprise operation.

Direct subsidy policy means that the state directly subsidize growers. At present, grain subsidies in China adopt a direct subsidy and a minimum guarantee price parallel policy.

The direct subsidy policy, on the one hand, reduces the intermediate links and directly protects the interests of cotton farmers. On the other hand, it promotes the marketization of cotton prices, and the domestic cotton prices will gradually link up with the international cotton prices, so as to solve the problem of excessive cotton prices both inside and outside the country.

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< p > cotton direct subsidy needs to be well designed, and the decentralization and individualization of cotton farmers are the main difficulties in implementation.

The US direct subsidy policy is relatively large, and the subsidy amount is about half of the cotton price. However, the United States is a large farm organization unit. About 40 million cotton farmers in China are mainly small workshops, and decentralized and individualized planting brings some practical resistance to direct subsidy.

The intensity of subsidies is expected to be lower than that of the United States. According to expert estimates, it is estimated that the minimum guarantee price will be set up according to the direct subsidy of grain by the standard of 100-120 yuan per mu, but the price will definitely be lower than the current reserve price, and the intensity of specific subsidies will have to wait for the policy to come out.

The direct subsidy policy needs to consider the well-designed mechanism comprehensively, otherwise it may increase the supply fluctuation, causing the cotton grain to distort than the yield.

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