Affected By Domestic Cotton Throwing Policy, Cotton Enterprises Are Closed Or Moved Out.

At present, cotton companies are reluctant to increase their stocks of cotton and their products.

It will start selling in April this year.

Because of the large number of national cotton reserves, the total volume is as high as 10 million - 11 million tons, which can fully meet the domestic cotton market consumption for about a year and a half.

Therefore, even if the inventory of raw materials and products of cotton is very low, the production and operation of enterprises can make money, and cotton enterprises still dare not increase their inventory.

Before the huge inventory of cotton stored in the state has not been digested, it is difficult for the domestic cotton prices to be determined by the market.

Because before the sale rules are promulgated, enterprises will be damaged if they pay no attention.

Since the implementation of the cotton purchase and storage policy, domestic cotton prices have been rising all the way, and soon exceeded the cost of imported cotton.

Although the implementation of the purchase and storage policy protected the interests of cotton farmers to a certain extent and stabilized the market prices at the early stage of implementation, however, due to the timely adjustment of market prices, domestic cotton prices continued to rise after exceeding the cost of imported cotton. At the highest price, the price of the cotton reached a few thousand yuan, leading to the influx of large quantities of imported cotton and their products into the domestic market. Most of the domestic cotton entered the national treasury, which resulted in many cotton downstream enterprises unable to bear the high cost, or to close down or shut down or move out.

In 2014, the state decided to implement the target price policy in Xinjiang cotton area. Without the support of purchasing and storage policy, domestic cotton prices dropped rapidly from 30 thousand yuan per ton to the current 10 thousand yuan, and some cotton enterprises suffered a lot because of the large inventory of cotton and their products, and the cotton prices continued to fall.

It is understood that last year, the number of national cotton reserves was about 1 million 600 thousand tons, and the actual turnover was less than 70 thousand tons, mainly due to higher selling prices.

The market expects that the number of state-owned cotton dump sales this year will be around 2 million tons, and the selling price may be close to the market price.

Because the current market has no bottom to sell the volume, and

There is still no effective recovery. Before the sale of state cotton and cotton, the cotton enterprises are afraid to act rashly in production and operation.

In 2015/2016, cotton production in Xinjiang is about 3 million 500 thousand to 3 million 700 thousand tons, the output of cotton in the mainland is about 1 million to 1 million 100 thousand tons, domestic consumption is about 6 million to 6 million 600 thousand tons, and the pattern of domestic cotton shortage has already been formed. The gap between production and demand needs to be imported to make up for the sale of national cotton and cotton. If the cost of imported cotton rises or the sale of national cotton is not in time, the domestic cotton prices may rise in the future.

Due to the low subsidies for cotton planting, and the purchase price of seed cotton market has not reached the psychological expectations of cotton farmers in recent years, Hebei, Shandong, Hubei, Henan and other mainland cotton farmers will not have strong willingness to grow cotton in the new year.

According to the survey data of farmers' willingness to grow in the producing areas, the cotton planting area continued to decline in the mainland this year. It is a foregone conclusion. Even if the yield per unit area increases during the cotton production in the future, it will not be able to fully compensate for the loss of the total production caused by the decline of the area.

When the market target price announced recently is higher than that of psychological expectation,

Farmers' willingness to grow cotton is strong. It is estimated that there will be little change in cotton planting area in Xinjiang this year.