Cotton industry chain links are difficult situation

Since the second half of this year, in order to stabilize the cotton market, to protect the interests of cotton growers, the state issued for a number of rescue measures, including raising the textile and garment export tax rebate rate, “the six measures,” the release, as well as 1,220,000 tons of cotton land reserves. Macro-control efforts last week to increase again, has been States made it clear that Shouchu will be 1,500,000 tons of cotton to save the country in order to increase domestic cotton market to support the effort. At the same time will also be improved to increase the scope of subsidies to cotton production areas large increase in the county to subsidize the purchase of agricultural, textile and also will support strong measures.

Nevertheless, the market did not expect a significant rise in the market quickly digested the good of all, the period in the price of good policy and common demand of the bad impact of shocks to run. On the other hand, the current status of the cotton market, rather than general supply and demand rather than contradictory to the whole industrial chain, there are constant reports about the closure of textile enterprises to close. Shaoxing, Zhejiang reported a few days ago one of the leading textile companies – Zhejiang China Group, as a result of strand breaks on the brink of financial collapse, which gave the market a wake-up call.

Taking an overall view of the cotton industry chain, from farmers to processing enterprises, to the textile industry, cotton industry chain link, they are struggling.

First of all, the situation of cotton growers. In the cotton industry chain, cotton has a population of about 150,000,000, is the industry chain, the most populous group, but they producing small-scale, low levels of productivity in the market competition has always been a weak position.

According to the survey, this year’s cotton production costs increased by a larger margin, the current expectations of seed cotton farmers in the purchase price 3.0-3.2 yuan / catty about, which is lower than 2.6 yuan / jin is not profitable, and the cotton purchasing price from the previous 2.6 yuan / Jin dropped to 2.4 yuan / jin around, and still fall, the price of cotton in some areas even have been maintained at 1.8 yuan / jin from top to bottom, which is much lower than expected cotton psychological, and some farmers on the land where cotton is also mature No pick admission.

It is reported that this kind of cotton per mu yield of the need to package costs 430 yuan, fertilizer costs 50 yuan, 40 yuan plastic sheeting, water charges to 200 yuan, 100 yuan cost of pesticides, defloration labor costs 200 yuan per mu yield of this down to a total of Need money to the cost of 1,000 yuan, according to real estate 400 jin per mu yield of cotton price and catty 1.8 yuan terms, the income per mu is about 800 yuan money, which means that each mu of cotton to the loss of nearly 200 yuan, and now Because of concerns the acquisition purchase price will decline, is the price of 1.8 yuan to purchase very few people, so farmers had no choice but to store cotton on the family.

Cotton and cotton will be a large backlog of at home, easily damp mildew, or blended with all sorts of things, a direct impact on the quality, not to sell more to a good price. Sales of cotton this year, going from bad to worse, next year will directly affect the enthusiasm of farmers planting, cotton acreage next year will be significantly reduced.

This was followed by cotton processing enterprises. Since mid-October, the state of the first 220,000 tons of Xinjiang and the second group, including on the part of the mainland’s third batch of 1,000,000 tons, as well as the market expected the 1,500,000 tons of cotton Shouchu policy has played a role in propping up the market , The spot price of basic lint stabilized, but trading remained quiet, too many uncertainties, the cotton business has always been cautious attitude of the acquisition, a direct impact on the industry chain of the most vulnerable farmers.

In addition, due to the reduction of cotton orders, the backlog of products, expected shortly after a dismal, leading to the acquisition of cotton into a corner. It is reported that the processing lint at 14,000 yuan / ton or so, if not immediately for sale, only the monthly interest charges will increase 150 yuan / ton, if I come out on the sales process, based on current market conditions, profit is thin . Related to plant cotton to the person in charge, since the acquisition of all sales so far in the loss, a loss in the range of 300-500 yuan / ton.

Is once again the lower reaches of the textile industry. Many cotton producers have said that in the first half of this year, overall sales of textile products performed well into June, however, the textile industry began to significantly reduce the volume of orders, or some even more than 40%.

Related to research showed that cotton prices in the last few months than cotton price range, the spinning has begun a substantial loss, and more than 60% of cotton yarn downstream businesses are closed, so that this inventory backlog of more textile industry in a very passive, Even though cotton prices can not be realized sales, and the downstream business there are a large number of stocks. As a result, cotton yarn prices began falling a lower rate, shutting down most of the production line, to substantially lower wages, and some more rate cuts are more than 50%. The whole chain of textile industry overcapacity, a large backlog of inventory, capital chain tension.

In addition, with the spreading financial crisis, Europe and the United States with varying degrees of economic decline, international demand remains in the doldrums, China’s textile industry is facing severe challenges. From last week’s imports and exports in November, we can see that the financial crisis intensifies, blocked the export market, the textile industry bearing the brunt of increased difficulties.

At present, two-thirds of China’s textile enterprises, only about 0.6 percent profit margin, many enterprises are facing the risk of collapse, as a direct result of market demand for cotton declines. Moreover, the textile industry is facing pressure to repay the year, the interest cost of funds in increasing difficulties can be seen.

As a result, this series of problems for the market worried about the industrial chain of cotton, cotton industry chain has become the first to the plight of the city’s largest cotton-day bad. Even if the country is difficult for farmers to sell cotton have been Shouchu and 220,000 tons, 1,000,000 tons, 1,500,000 tons, in order to support even the lower reaches of the cotton textile industry and increase the export tax rebate rate, but in good digestion, the futures price is no U-turn upward Momentum. Cotton market in the doldrums, the price fluctuations, a significant decline in cotton yield has seriously affected the enthusiasm of farmers Zhong Mian, experts have proposed to acquire the protection of the minimum price of cotton, cotton farmers to produce a kind of “assurance” to protect the interests of cotton growers, The stability of cotton production. At the same time, but also increase the textile business and financial support for exports, improve the cotton industry through the chain of the lower reaches of the environment in order to boost the flow of the entire industry. This is because the healthy development of the industry as a whole is the city of cotton has been the driving force behind the boost.