China Cotton Association, cotton price fall release conditions

State 220,000 tons Xinjiang Shouchu task with only a week to be completed, however, China Cotton Association, released yesterday, Express showed that the domestic cotton market situation is still not optimistic, the cotton price decline remains. Some have suggested that the country should be in addition to a further increase in the number of Shouchu Xinjiang, should consider increasing the number of mainland Shouchu Treasury, in order to promote direct purchase price of seed cotton in the Mainland.

China Cotton Association Express revealed that on October 21 launched a national Shouchu Xinjiang, the same day the completion of 30,000 tons Shouchu plan, traded an average price of 12,170 yuan / ton. 22, the state changed the way transactions from 12,600 yuan / ton to the highest transaction price of the Treasury changed the price to be 12,600 yuan / ton, traders time to participate in the principle of priority. Under the new rules to stimulate, 24, the first batch of 220,000 tons Shouchu Xinjiang has been completed. Temporary changes in the way trading on the Shouchu State’s determination to shore up the market a lot.

But Shouchu Nanzu Xinjiang cotton seed cotton price continued to fall in the Mainland. China Cotton Association Express showed that over the weekend, the standard grade seed cotton purchase price to 2.57 yuan in the Mainland / heavier than the previous week fell 0.13 yuan, 2.49 yuan in Xinjiang / heavier than the previous week down 0.04 yuan.

Experts said that lack of demand caused by cotton prices is an important reason for China’s textile industry is now in the multiple internal and external pressure on under long been on the verge of death, in the most difficult time. World all-round economic recession, is on a serious decline in external demand, while inflation in the domestic market and capital market crash, residents of the actual slowdown in the growth of spending power even lower; and depression brought about by the textile industry to invest significantly reduced capacity, corporate debt pressure Generally increase the capital-strand breaks and bankruptcy triggered a larger wave of systemic risk the possibility of greatly increased.

Despite the recent decision of the country since November to increase from the textile, clothing and other labor-intensive goods for export tax rebate rate from 13% to 14%. However, Wang forward the view that this effort is too small, difficult to change the plight of the industry, he suggested the country should be a one-time clothing and textile export tax rebate to 17 percent, significantly lower the tax burden for SMEs, at the same time effectively resolve the difficult issues such as corporate finance.

Beijing Oriental Iger Huang Dejun, general manager of the agricultural consulting company said that the textile industry can not be out of the current difficulties, the domestic cotton supply and demand situation will be insufficient to maintain long-term. Cotton prices continued to drop by, the lower reaches of factors such as lack of demand, cotton enterprises having to judge unknown, to buy into the market very carefully, cotton prices fell still further the trend. In order to stabilize cotton production, to protect the interests of cotton growers, the state should further increase the number of Shouchu, he suggested that in addition to Shouchu Xinjiang, the state should consider increasing the library Shouchu mainland, in order to promote direct purchase price of seed cotton in the Mainland.