For cotton in 2008 related to the enterprises find it difficult year. This year, we have experienced natural disasters, experienced a sharp fall in cotton prices, has experienced the appreciation of the renminbi, has experienced the financial crisis turned into an economic crisis spread to the real economy, the textile and related industries created a huge impact.

This year cotton prices , from the first half of 2008’s smooth operation, which began in July to price increases down deep to bottomed in mid-November to stabilize the domestic spot price of cotton up to a maximum 13,800 yuan per ton, the lowest to the 10,400 yuan, to December 31, 2008 to 10,953 yuan / ton. State to take positive measures to cope with the economic downturn, including the new cotton reserves plan and expand the scope of seed subsidies, the cotton market bottomed stabilization in the years after the policy is expected to gradually warming under care. Let us work together to witness the 2008 history of the development of cotton industry now.

A reduction in cotton area

  cotton area in 2008 have reduced stability, according to rough statistics: in 2008, Hubei Province, an area of 670 mu of cotton, 380,000 tons output; Hebei cotton planting area of 1035 mu, total output of 735,000 tons; Shanxi Yuncheng more than 130 million mu of cultivated area; Xinjiang area 2434 mu, total output of 2,700,000 tons. The second half of 2008 due to decline in cotton prices, many cotton farmers prepared to reduce the cotton area in 2009, to grain, cotton is expected in 2009 will be a substantial decline in the value of the area. Among them, Xinjiang’s cotton planting area will be reduced to below 2000 mu, and in the next 5 years compression 700 million mu of cotton acreage. In order to stabilize cotton production, ensure that the cotton supply, the Ministry of Agriculture will strive to cotton area in 2009 remained at about 8500 mu.

Second, the continuing decline in cotton imports

Domestic cotton price was larger than the decrease as a result of international, quasi-sliding average after-tax to replace imported cotton,post with more than 1000 yuan per ton, to replace imported cotton, there is no price advantage. Blocked the export of domestic textile enterprises affected the demand for cotton, to replace imported cotton from consecutive reduction since August.

According to customs statistics, in 2008 China’s January-November a total of 1,943,000 tons of cotton imports, worth 3.24 billion U.S. dollars, more than the same period last year (the same below) were down 9.1 percent and 8.6 percent growth; import average price of 1666 U.S. dollars / ton, up 19.4%.

Third, can not be optimistic about the quality to replace imported cotton, cotton outside suppliers to implement registration and management

The quality of imported cotton high failure rate of the overall decline, eight more than short-weight, carrying the epidemic is still very serious. In order to prevent the import of cotton , doping adulteration, such as trade fraud, protect the quality of imported cotton from September 15, 2008, the AQSIQ outside supplier firms start accepting applications for registration.

Fourth, the implementation of the new national standards for cotton packing

GB 6975-2007 “cotton packaging” in the April 1, 2008 into effect. “Cotton packaging” standard as amended in accordance with the basic idea is “cotton quality inspection system reform program” requirements, combined with the processing of cotton in our country at this stage the actual situation, taking into account international standards and the world’s major cotton producing big powers advanced standards, after a great deal of research, test, demonstration and extensive solicitation of opinions, the completion of the revision.

Fifth, the fourth anniversary of the cotton futures market

June 1, 2004, cotton futures in Zhengzhou Commodity Exchange traded as a futures market in China after the rectification of listed countries have ratified the first new varieties of futures was seen as China’s futures markets have been developing steadily into an important milestone. Four years, cotton-related enterprises to take advantage of the cotton futures market to hedge, to circumvent the market price risks, improved enterprise efficiency and achieve the sound operation of enterprises.

6, cotton imports slide quasi-tax cut

Tariff Policy Commission of the State Council recently decided that, from 2008 June 5 to October 5 for a certain number of extra-quota imports of cotton with the interim Waterloo quasi-tax, higher import prices will be high-quality cotton applicable duty from 570 yuan / ton down to 357 yuan / ton, which is equivalent to cotton slip prospective tax from 5% -40% to 3% -40%, and from October 6 to resume quasi-tax current slide.

The level of tax reduction to replace imported cotton, there will be conducive to the promotion of cotton imports, to prevent the end of the year prices rose too fast, in line with the rational use of low-cost principle to replace imported cotton. However, due to various factors, an unprecedented deterioration of the living environment for the textile industry, enterprises large-scale production output, to replace imported cotton, quasi-tax adjustment of Waterloo, can not directly change the plight of the textile industry.

VII cotton subsidies: cotton seed subsidies and transportation subsidies Xinjiang

Cotton seed subsidies: in 2007, following the implementation of improved varieties of cotton subsidy policy, the state finance in 2008 once again come up with 30 million yuan, the provinces of the main cotton-producing regions of cotton per mu subsidy 15 respectively. The move is intended to promote the fine varieties of cotton, and optimize the product structure, improve cotton production and enhance the quality of raw cotton fiber quality and increase their income.

Xinjiang transport subsidies: In order to help solve the Xinjiang’s cotton sales areas to stay away from the mainland shift the cost of higher Treasury issues, the promotion of Xinjiang’s cotton sales, the protection of Xinjiang cotton industry initiative, the central government decided to sell to the Mainland Area in Xinjiang cotton shift cost the Treasury appropriate subsidies. In line with national standards of Xinjiang cotton, regardless of rank and length, the central government to subsidize 400 yuan per ton fixed.

8, 2008拾花price as high as 1.5 per head for the highest

As the Mainland labor to reduce the number of Xinjiang, in 2008 the Xinjiang cotton prices are the highest since a year. Found scattered workers spent 1.50 per kg, but also provide a free lunch at noon, long-term fixed price workers is relatively stable, for 1.20 yuan per kilogram, but the burden of workers three meals a day and accommodation, Labor would also like to provide the end of one-way tolls in their hometowns. increased costs, so that farmers of the cotton price decline in an increasingly more non-profit.

9, the international strength to shore up the market: a cotton, second , three and four

150,000 tons a : 2007 Annual production of cotton in Xinjiang

In order to solve difficult problems sales Xinjiang, stability, Xinjiang’s cotton production, the state departments concerned decided since August 21 Xinjiang. The way the rotation to round into Xinjiang cotton production in 2007, and the first round of the number of provisional income 150,000 tons, the standard level by 13,400 yuan per ton (Xinjiang Treasury) and 13,600 yuan (Mainland Treasury points) as the highest price of the Treasury. The general view was too small, resulting in the domestic cotton prices no clear impact, the domestic cotton prices continue to drop.

Second 220,000 tons: With regard to the year 2008 Xinjiang notice in the October 16 release.

As a result of the acquisition of seed cotton this year, the market is very quiet, slow progress in the long run, will seriously damage the interests of farmers, the impact of next year’s cotton enthusiasm, adverse cotton market stability. To this end, the National Development and Reform Commission and other relevant departments decided to October 16 the second Xinjiang cotton market stable, is tentatively scheduled for the highest price to the Treasury (Treasury points Xinjiang) Price 12,600 yuan / ton, the number of temporary scheduled for 220,000 tons.

Three 1,000,000 tons: Some plans for the Mainland cotton  

October 29 countries officially announced the second batch of one million tons of cotton in order to solve the problem of poor sales of domestic cotton to protect the interests of farmers. 1,000,000 tons plan will be part of the country recently for the Mainland cotton . cotton production must be the year 2008 by the apparatus of notarization sawtooth test , grade requirements for 1-4. However, countries, the cotton price has remained stagnant.

Fourth 1,500,000 tons: prices 12,600 yuan / ton

December 22, the state decided to increase 1.5 million tons in 2008 the annual production of cotton, the cotton market stability and enhance market confidence. The new programs, which are still only tested by the apparatus of the large bales of cotton, prices still 12,600 yuan / ton implementation. In view of the acquisition of new cotton slow progress, will increase the number of in the Mainland. At the same time announced that this will not take auction, but the prices in accordance with the regulations to implement the transaction, will work with enterprises directly linked to the acquisition of seed cotton, will be the most direct benefit cotton growers.

10, cotton prices fell below the psychological farmers bottom line

Affected by a combination of factors at home and abroad, the new annual cotton prices fell, especially in October, the increase rate of decline accelerated, has broken through the psychological bottom line price cotton farmers, if the latter there are no major changes, loss of cotton farmers is a fact. As a result of the purchase price in the doldrums, and the Xinjiang cotton farmers earn less than workers.