Preliminary Achievements In Pilot Cotton Policy

Experts believe that at present, Xinjiang's cotton target price reform has been progressing smoothly, and the main body of the market has basically adapted to the market operation mechanism, and has achieved initial results, but all aspects have also reflected some difficulties and problems.

At present, the key is to accurately pay the subsidy funds to cotton growers. The next step should be based on the overall situation of China's cotton industry development, and carry out a comprehensive and systematic assessment of the cotton target price policy. On the basis of this, we should improve the operation methods, simplify the operation procedures, and actively and steadily push forward the reform of the price formation mechanism of China's agricultural products.

Cotton market price formation mechanism was initially established, cotton textile enterprises operating conditions tend to improve, and resource optimization and integration in cotton processing area.

"Cotton target price reform has made a notable achievement in straightening out the cotton price formation mechanism. The synergy of seed cotton price, lint price and international cotton price has been significantly enhanced, and the market awareness of the main market has been significantly strengthened."

Liu Yu, associate professor of the Institute of science and technology policy and management science, Chinese Academy of Sciences believes that the formation mechanism of cotton market price has been initially established.

According to the introduction, when the pro reserve policy was implemented in 2013, almost all of the lint was stored in the national reserve, and the price of seed cotton purchase fluctuated by only a few cents per kilogram.

After the reform, the processing enterprises directly connect with the textile enterprises, and the number of buyers and sellers in the lint market is large, which is close to a fully competitive market, and the price of the lint market is beginning to take shape.

The purchase price of seed cotton also fluctuates synchronously with the supply and demand of the local market and the spot price of cotton and leather at home and abroad. The current fluctuation rate has exceeded 1 yuan / kg.

Liu Yu believes that it is worth affirming that in this case, there is no widespread sale in Xinjiang.

The coordinated operation mechanism of various links of purchase and sale is gradually adapting to the needs of reform.

The second effect of the target price reform is that cotton textile enterprises are getting better.

In 2014, the price of cotton was formed by the market, and the government subsidized cotton enterprises with Xinjiang cotton and yarns for 500 yuan / ton and 1000 yuan / ton respectively.

Data show that in 2014 1~10 months, Xinjiang textile industry fixed asset investment grew by more than 1 times, and more than 4 new jobs were added.

According to customs import cotton yarn data, import volume began to decline from April 2014, and domestic cotton yarn usage increased.

The initial establishment of the formation mechanism promoted cotton.

Resource optimization and integration.

"Processing enterprises have to find buyers themselves, take all market risks, and some uncompetitive processing enterprises gradually withdraw from the market, which is a good thing for optimizing the allocation of resources."

Liu Yu said.

In addition, when the Xinjiang autonomous region recognized the qualification of processing enterprises, it excluded some bad credit quality, arrears of farmers' funds and weak strength, which also promoted the optimization and integration of resources.