Cotton Prices Close To International Market

The state started the temporary storage policy in the main cotton producing areas in China since 2011. The temporary storage price of cotton was raised from 19800 yuan / ton (standard grade lint) in 2011 to 20400 yuan / ton in 2013.

Li Li, a cotton analyst at Huaan futures, told reporters that during the three consecutive years of open storage and purchase policy, the State Reserve storehouse collected 16 million 180 thousand tons of standard lint, which is two times the annual consumption of domestic products, while the total reserves in the three years are only 4 million 200 thousand tons.

That is to say, the net storage capacity of the national reservoir is as high as 12 million tons, and the total volume of the national storage is estimated to be over 14 million tons, which is equivalent to the production demand of the downstream industry for two years.

The implementation of the pro reserve policy, while protecting the interests of cotton farmers, also made the domestic cotton market out of touch with the international market.

With the increase of production cost, the international competitiveness of its products has been slump and export volume has dropped sharply.

Cotton is the first abolition in China.

Since the last year, the entire cotton industry chain has undergone tremendous changes due to the adjustment of policies.

As time goes on, all participants in the cotton industry chain are adjusting themselves to the fluctuation rhythm of the cotton market.

In order to change domestic cotton storage and storage

Last year, the domestic cotton market support policy was adjusted to the target price of 19800 yuan / ton for Xinjiang cotton area from the past new cotton temporary storage. Compared with the temporary storage policy, the purchase price of Xinjiang cotton was reduced by 600 yuan / ton. The central government also subsidized cotton farmers in the main cotton producing areas such as Anhui and Shandong provinces, with a ceiling of not more than 2000 yuan / ton (lint).

The target price of Xinjiang cotton area has been lowered to 19100 yuan / ton this year, and the Cotton Subsidy Policy in the mainland has not yet been introduced.

Reporters learned that although the domestic and international cotton market prices further closer, but the domestic and foreign cotton prices under the 1% tariff is still 2000 yuan / ton, import cotton prices still occupy relative advantage.

Under the strict control of import quotas, cotton imports are decreasing year by year.

Cotton growers have greatly reduced their planting income.

According to the monitoring of the price and cost investigation and Supervision Bureau of the provincial Price Bureau, we found that the average selling price of cotton in the cotton area of our province last year was 676.65 yuan per 50 kilograms, compared with 50 yuan per 977.03 yuan in 2013, a decrease of 300.38 yuan, and the net profit of cotton per mu decreased by 280.13 yuan compared with that of last year.

Li Li told Keji, with the sharp decline in planting income, the actual cotton planting area in the whole country is expected to be 52 million 640 thousand mu this year, a decrease of 13 million 450 thousand mu compared with 2014 and a decrease of 20%.