Agricultural Development Bank'S 42.5 Billion Yuan Helps The Whole Xinjiang Cotton Purchase Work Close

On August 13, the Agricultural Development Bank of China Xinjiang Uygur Autonomous Region Branch realized "double zero settlement" in 2020 cotton purchase loan, marking the successful conclusion of the bank's cotton purchase credit work in the previous year.

In 2020, Xinjiang branch took the initiative to play its role as the main channel of cotton purchase fund supply, and granted a total of 42.5 billion yuan of cotton purchase loans to 143 enterprises, and supported the purchase of 3.57 million tons of cotton, accounting for 64% of the total cotton output in Xinjiang. Since this year, affected by the superimposed factors such as the new crown pneumonia epidemic and Sino US trade friction, the cotton market situation has become increasingly severe. In order to reduce the business risks of cotton enterprises and promote the sustainable and healthy development of the cotton industry, Xinjiang branch has taken various measures to help agricultural sales and effectively safeguard the interests of cotton farmers.

We will promote "value preserving loans" and broaden channels. In order to effectively alleviate the pressure of centralized spot selling on cotton market, the bank actively promoted the "hedging loan" business of cotton, combined the financial instrument of cotton futures hedging with cotton sales, gave full play to the positive role of futures market in finding prices, guiding the market and avoiding risks, helping enterprises broaden sales channels and speed up sales progress. By the end of July, 8210 cotton futures standard warehouse receipts had been registered and generated by on-site and off-site value preservation and loan enterprises, which helped enterprises make a profit of nearly 500 million yuan.

Support "upstream and downstream" to open up channels. Make overall use of cotton, cotton yarn "warehouse receipt loan" and other business forms, promote cotton acquisition and textile downstream enterprise production and marketing docking, revitalize cotton, cotton yarn inventory. It has successively supported a number of downstream companies of Xinjiang Lihua textile and Aksu Xinhao textile, effectively alleviated the unsalable problem of cotton downstream textile enterprises due to insufficient consumption, and further improved the liquidity of the whole cotton industry chain. In addition, it also provides preferential interest rate to industrial chain enterprises, gives priority to guarantee in capital and preferential acceptance in process, so as to effectively reduce costs and bring tangible benefits for enterprises.

Strengthen supervision and identify channels. Through discussion, visit and other ways, establish a good communication mechanism with enterprises, help enterprises rationally analyze and predict the market, and guide enterprises to operate steadily. At the same time, according to the implementation of sales contracts by enterprises, we should formulate balanced sales plans one by one, focus on sales promotion and loan collection and inventory supervision of key enterprises, establish sales loan repayment accounts, and monitor enterprises by enterprises on a daily basis to ensure that balanced sales plans are implemented and loans are recovered on time.