The Agricultural Development Bank Decided To Set Up A Warning Line For Cotton Purchasing Price This Year.

In order to coordinate the state's control of cotton prices and effectively prevent and control credit risks, the Agricultural Development Bank has decided to set up a warning line for cotton purchasing prices this year.

Wei Shiwu, vice president of the Agricultural Development Bank, said the takeover price warning line mainly refers to the price level of the domestic and foreign cotton market's terminal consumption.

For enterprises that purchase cotton more than cotton purchase price warning line, they should stop lending.

When the market price fluctuates greatly, the head office will issue price warning notice at any time.

Wei Shiwu said that the agricultural development bank will continue to implement the upper limit of the cotton purchase loan this year, that is, the benchmark of the standard grade lint purchase loan is tentatively set at 500 yuan / load (Xinjiang 480 yuan / Dan), allowing the highest float of 50 yuan / Dan, and the downward float is not limited.

During the acquisition period, if the market of cotton purchase and sale has changed greatly, the head office will adjust the loan ceiling in time.

According to our understanding, since the 2005 cotton year, the Agricultural Development Bank has issued a total of 41 billion 100 million yuan of cotton purchase loans, supporting the acquisition of 66 million 480 thousand cotton varieties by all kinds of cotton enterprises, accounting for more than half of the total cotton output in China.