Low Efficiency To Save Cotton Or Save Textiles?

The planting benefit is low, and the economic crops and cotton compete for the land seriously. To prevent cotton from taking the road of soybean, it is necessary to normalize the cotton storage and storage policy.

However, under the normal high price cotton, the domestic cotton circulation industry is facing the risk of extinction, and the textile industry will decline sharply in the process of gradual loss of cost advantage.

Saving cotton or saving textiles? Facing the dilemma of the upper and lower reaches of the cotton industry chain, the industry appealed to the policy-making departments to promulgate corresponding policies as soon as possible and straighten out the relations between the parties.

"In order to avoid the impact of the international market on cotton, it is suggested that the policy of storage and purchase be normalized so as to prevent cotton from taking the road of soybeans."

Liu Rui, a rural economic research center of the Ministry of agriculture, said at the 2012 China National Cotton Association's national situation analysis conference that the main problems faced by cotton production were large quantities of labor, high cost, low efficiency and low degree of mechanization.

After the acquisition of the lowest cotton protection price in the past year, Liu Rui thought the situation was good for the cotton production this year.

According to the survey of 16 major provinces in August by the Agricultural Research Center, the national planting area decreased by 6.6%, of which the the Yellow River basin and the Yangtze River Basin decreased by 9.7% and 13.1% respectively, while the northwest inland area increased by 3.37%.

At present, the production situation is good. Seed cotton production is estimated at 265 kg / mu, 93 kg of lint cotton and 6 million 570 thousand tons of total output.

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After listing, the price is expected to rise slightly, 38% of clothing and 1.3 yuan per catty of cottonseed. The purchase price will fluctuate between 4.3 yuan and ~4.45 yuan.

Bian Shenggui, Deputy Secretary General of Shandong Cotton Association predicts.

Statistics show that in 2012, cotton planting area in Shandong province was 10 million 200 thousand mu, down 9.6% compared with the same period last year, and the area has been reduced for 5 consecutive years. The total production is expected to be around 600 thousand tons this year.

Hunan Cotton Association's latest estimate that the province's planting area of 3 million acres this year, down 10% from last year, the current growth is basically normal, the unit yield increased over the previous year, the total output is expected to total 260 thousand tons to 280 thousand tons, which is basically the same as last year.

Although it is not bad at present, the most critical period of the Yangtze River Basin is from late September to early October.

Obviously, Shandong's 5 consecutive years of reduced production area showed that although cotton growers benefited from the minimum protection price, planting enthusiasm was still not enough, while downstream circulation and textile links had many objections to the minimum protective price acquisition.

He Yuegang, chairman of Hunan Yinhua cotton and hemp industry group, said that, on the one hand, the whole circulation enterprise did not care about market problems this year, but only concerned about the delivery of stocks. Therefore, it was very cautious about buying and entering the market and ready to stop at any time. This situation has not happened before.

He Yuegang believes that there are two main reasons for this: first, last year, the state policy was to protect the interests of farmers and protect the interests of textiles in the early stage, while the circulation enterprises did not protect them, and the two sides were under pressure. Two, last year, temporary storage and storage did not give profit margins to the circulation enterprises, and the cost rose more than expected.

On the other hand, affected by policy factors, this year's circulation enterprises will not do the market, resulting in a lack of a normal market order.

At the same time, the textile industry is also facing a difficult decline in profits.

According to the China Cotton Textile Industry Association survey, the national cotton yarn production decreased by 3% and the total profit decreased by 60%.

Wang Qingcui, Deputy Secretary General of China Cotton Textile Industry Association, thinks that 2012 is very difficult for cotton textile enterprises, and the impact on the former products is greater than that of the latter. The influence of yarn is greater than that of cloth and cloth is larger than clothing.

Plus labor costs and energy costs are rising, and China's cost advantage is gradually losing.

Bian Shenggui also said, because

Raw materials are still dominated by cotton, and some textile enterprises are actively adjusting their product mix.

However, affected by the macroeconomic situation, the textile industry in the next few months is still not optimistic.