Jiangsu Provincial Association of Cotton: Cotton and its proposed acquisition

1, cotton production: In recent years, Jiangsu cotton production area was an annual decline in the situation. According to the Provincial Cotton Association survey, the 2008 cotton planting area of about 400 million mu more than last year’s 435.8 million decreased 8%. (Provincial Bureau of Statistics survey in early 493 million last year, the cotton area of 502 hectares, down 1.8 percent) between the imbalance in the region, the main cotton-producing regions of Yancheng City in 2008 cotton planting area 224.66 million, 248.1 million last year to reduce the 234,400 Acre, down 9.45 percent; Nantong City in 2008 cotton area of 72 hectares, 68 million mu more than last year, an increase of 4 million, an increase of 5.9 percent.

This year, the province’s climatic conditions and the very last, the province’s cotton production is estimated at more than 330,000 tons, 352,000 tons more than last year, dropped 5%. One of the main cotton-producing regions of Yancheng City early because of weather, with a total production of about 3,200,000 Tam about 10 percent decline over the previous year; Nantong climate better than last year, the total output of up to 1,270,000 Tam about 9 percent increase over last year or so. (Note: The area of the province’s cotton output data in detail to Jiangsu Province in rural areas of statistics and census and Statistics Department announced on November 20 after which a few).

2, cotton:

In late August, the Provincial Cotton Association of cotton this year, a typical survey work, analysis of the characteristics of cotton this year, pointing out that: on the one hand, a large gap in cotton, on the other hand, there are still a large number of stocks; on the one hand, cotton textile enterprises need large, On the other hand, and other factors that increase the cost of textile enterprises have a significant impact on production; farmers on the one hand, this increase in cotton prices in the new cotton is expected to increase, on the other hand, it is difficult for enterprises to raise the price of cotton to digest; on the one hand, as a result of the new funds to buy cotton demand On the other hand, the credit crunch; at the same time, as some of the cotton distribution enterprises operating losses in recent years, and some may withdraw from the acquisition, and some wait-and-see. As a result, this year’s acquisition of the new cotton is difficult, the situation is not optimistic. At that time, the United States has not highlighted the financial crisis. The actual situation of cotton this year, new acquisitions more difficult than expected to be large.

The first is the latest acquisition, the slow progress. In accordance with normal circumstances, the acquisition of new cotton in the general 9 months, late, but, as the price of cotton this year, the new release, what level to buy units in the wait-and-see; cotton farmers to sell what price, in the wait-and-see; cotton funds are not implemented, Wait; time than usual to defer the acquisition. If Xinghua City, said that in the real-opened on October 10. Due to declining prices, a serious shortage of funds, the slow progress in the acquisition. According to statistics from related departments, to Oct. 30, the province’s progress sell cotton 39.23%, -5.98% in the same period last year. According to the Sheyang County Cotton Association on November 13 to statistics, 36,800 tons of lint to buy the same period last year to reduce 06,700 tons of new cotton sell up to 70%, and 30% of farmers in the hands of the people or the economy, Sheyang County The situation in the province is relatively good. Normally, cotton Department should wind up stage.

Second, falling prices, lack of funds. The new purchase price of cotton this year, from the acquisition, all the way down. Kai said the early-class standard price of seed cotton (below) 2.80 yuan / jin around, and then gradually decline. According to the cotton company executives to reflect, at present, the lowest price dropped to 2.10 yuan / jin. Moreover, prices are still volatile. Another highlight of the cotton issue, a shortage of funds. Association of the province in late October to investigate the topic Xinghua, reflecting a shortage of funds, as bottlenecks at the time of cotton. Acquisition unit to the agent playing the “white” and cotton brokers to play the “white”, which is not a place. Cotton farmers and thus lock the door, the trouble occurred from time to time. Even if the provincial cotton acquisition of a subsidiary company, due to lack of funds, but also playing the “white” 5,000,000 yuan. Sheyang County Cotton Association to incomplete statistics, the county maximum amount of accumulated time over 50,000,000 yuan.

Third, the operating loss, suspension of the limited land. As the prices keep falling this year, some of the land of cotton enterprises, as a result of the process of cotton processing time difference, such as the new cotton processing from the sale, the price has dropped, operating at a loss. Processing a shortage of funds, these enterprises are gradually restricting, suspension. Some local farmers appear to queue up to sell cotton. Panda Dafeng purchasing cotton still line up overnight, waiting for the sale of cotton. No cotton in some places to form close, the flow of business closed did not dare. Sheyang County to reflect, one after another from the business district, brokers wait-and-see industry interest, to stop foreign enterprises in the city of cotton.

Second, the new cotton purchase work on the causes and consequences.

1. The source of trouble: cotton this year’s problems, the reasons are complex.

International financial crisis, domestic textile enterprises export impact of the national cotton industry to reduce the overall demand for cotton, resulting in declining cotton prices. According to the Chinese cotton price index to reflect, to CCINDE * 328 dollars, on October 30, 2007 13,536 yuan / ton, October 30, 2008 11,773 yuan / ton, 1763 yuan lower than last year / ton, down 13%; on November 13 Japan 10,643 yuan / ton, 2893 yuan lower than last year / ton, down 21%; 2008 from Oct. 30 to Nov. 13, down 1094 yuan / ton, 9.3 percent decline. From the above data shows decline in cotton prices and the recent downward trend to accelerate. The decline in cotton prices has a direct impact on the price of seed cotton, at the same time, due to a decline cottonseed prices this year, seed cotton prices is inevitable. Internationally, the December cotton contract CT28 down about 2.21 cents, or 5.09 percent, reported 39.14 cents a pound, which range for the exchange of 41.36-38.45 cents in the near future was low.

2. The consequences of the industry:

Cotton farmers have grievances. Cotton this year due to the increase in the cost of cotton, cotton price all the way down, cotton-effective shrink. Cotton enterprises reduced cotton difficult to sell. Non-cash acquisition of the funds, disguised white. Heart farmers have grievances, and some local cotton farmers can not sell, said to Nanjing to pick. Some local buying offices will be locked the door. Cotton farmers also is part of the three rural. The importance of strengthening the voice of agriculture, farmers are indeed facing a different situation, it is very uncoordinated, is not conducive to social stability. Do not think that clothing is not a problem, do not forget that cotton is the first solution to the warmth of the people.

Reduce the large income. By cotton growers as an important source of income. This year, due to rising costs, lower prices, farmers income has dropped significantly. In Sheyang County, for example: According to the survey, as a result of chemical fertilizers and pesticides prices, Sheyang County, per mu of cotton material costs increased by 59.03 yuan per kg lint increased 0.71 yuan. Per kilogram of seed cotton this year, the average price of about 4.7 yuan more than last year, the actual purchase price of 6.07 yuan per kilogram to reduce the 1.37 yuan, according to the rate of 37% of the total lint, lint 3.70 yuan per kilogram. . Both the incremental reduction in total lint per kg 4.41 yuan revenue reduction. According to the Sheyang County has received 36,800 tons of dollars, the income of farmers to reduce the income of 162,288,000 yuan. This calculation, the province’s farmers are more revenue. That being the case, and increase their income, expanding domestic demand, but also inconsistent. The impact of the party and the government’s image. To reduce the large area. Cotton this year, do not make money, hard to sell cotton, cotton farmers will definitely affect the enthusiasm of Zhongmian directly affect next year decline in cotton area. Sheyang County, according to survey the implementation of the layout of Chakou autumn, if the country does not support the new cotton production or the development of policy measures in the coming year the county’s cotton acreage this year than the actual cultivation area reduced by 10%. We must understand that our province’s cotton textile industry to use only self-sufficiency rate of 60%, this would increase the province’s textile industry Province, to replace imported cotton dependence.

Three suggestions:

1. To do a good job in the late work of the cotton. Be open-admission, rejection. Funds do a good job in cash, cash “white.” All local governments should pay attention to. The province’s departments should actively support. Related to the financial sector to actively address the funding requirements of cotton.

2. Shouchu the development of provincial plans. This year, the state issued 1,000,000 tons Shouchu task is to solve the problem in Xinjiang. According to the current situation in our province, our province as soon as possible and to the development of new cotton Shouchu plan. To do this work, the stability of cotton, price stability and ensure the income of farmers and promote the healthy development of a harmonious society, to resolve the cotton business losses. Zhejiang province is a neighbor of cotton sales areas, the province has adopted a way to save, stability and security of Zhejiang cotton. In the past, our province 50,000,000 yuan of financial support for the cotton swap funds, the establishment of a conditional Shouchu work. Under the current acquisition of businesses, farmers and brokers in the hands of a certain number of cotton, proposed the establishment of 50,000 tons of cotton Shouchu plans, and as soon as possible.