In mid-October 2008 acquisition of new cotton to the present, the province’s cotton market has been very quiet. Chengan County left the village of Chengguan Town, Peng big told this writer that in previous years in October from the beginning of a large number of cotton on the acquisition of new cotton, cotton farmers have begun to sell a large amount of general early December cotton on the sold out can be listed in 2008 when the new cotton acquired businesses and the acquisition has been sporadic, and the price has dropped, to the present 4.2 yuan per kilogram of seed cotton no enterprise is willing to close. Many cotton growers also in the hands of pressure.

By higher earnings in 2007 the impact of the sown area of cotton in Hebei Province in 2008 reached 1035 million mu, an increase of 15 million mu more than the previous year. Hebei Province, according to the survey prices the cost of going to Bureau of Hebei Province, Handan, Xingtai, Hengshui, Cangzhou, Shijiazhuang five main cotton producing city 117 households survey in Hebei Province in 2008 the average per-mu yield of lint 80.10 kilograms (equivalent to 214.5 kilograms of seed cotton) , 3.6% more than the previous year. The total cost of acres farmers 1040.90 yuan (including material costs, land costs, labor costs), representing a 15.91 percent increase over the previous year. Due to sharp rise in the cost of cultivation, the purchase price remained low, since , seed cotton farmers an average price 5.2 yuan / kg to 4.2 yuan / kg, equivalent to an average of 509.01 yuan lint / 50 kg, about 24 percent year-on-year decline. Planting profits historic negative growth in net negative 14 per mu, 468 yuan over the previous year to reduce the 482 yuan. “My family’s 28 acres of cotton maturity high shiny white color, with an average 250 kilograms of seed cotton per acre, regardless of quality or production than good in 2007. Originally thought to produce much cotton in 2008 point to an increase of income, it can not think of cotton purchase price or not so many people would like to close. ” said the cotton market in 2007, the county three groups rushing to buy cotton, less than two months of his home on 30 acres of cotton sold, and net income 30,000 yuan (excluding land costs and some labor costs). In October 2008, when cotton prices just weighing, we feel very happy to be at that time most of the cotton have not picked, such as a large number of picking cotton prices fell down, nor how close the enterprise. To the Chinese New Year, and waiting to use the money he had lost the money had to sell a home more than 7000 kg seed cotton.

Hebei Province, according to the survey prices the cost of going to Bureau of Hebei Province, two cotton-producing counties and into Granville County, an investigation showed that cotton prices in 2008 in Hebei Province was , all the way down trend. The sale of seed cotton farmers by the end of October in per kilogram between 5.0 to 5.4 yuan, more than a kilogram at the beginning ofdrop of 0.8 million, about 13.3 percent decline, per kilogram than the same period last year had fallen from 1.2 to 1.4 yuan, a drop about 20%. At present, the two counties in the per kilogram of cotton price hovering around 4.2 yuan more than the same period in 2007 dropped by 2.2 yuan.

Industry analysis, based on 2007 costs and market cultivation, many farmers believe that the original 2008 price per kilogram of seed cotton in the 6.8 to 7.0 yuan more appropriate. However, due to the lower reaches of the downturn in the textile industry, making the annual cotton 07/08 cotton serious unsalable. 08/09 annual , all the way down the price, but also caused by cotton collect their compensation, and received little less lost. Due to the lack of cotton by-products (cottonseed and cotton linter) price support, many farmers expected decline, but that the price per kilogram of at least 5.6 yuan in the year before not white. But with the market price of cotton further downturn, at present, some farmers have no choice but to accept a lower price.

Experts suggested that the cotton as a national strategic commodities, the government should be based on planting costs, with reference to the international cotton price, cotton price, market demand factors to determine a reasonable minimum price of cotton. To bring into full play the guiding role of price signals, cotton, the lowest price or target price policy should be announced as early as possible, so be prepared for cotton farmers. At the same time, should also be treated as food, like the cotton implement “integrated agricultural incremental premium.”