Jiangsu Province is the largest cotton producing province, is also a textile-producing province. In recent years, our province and spinning volume of textile enterprises increased year by year. In 2007 compared to 2003, doubled in 4 years. The year 2007 about 30 million cotton tam around. Cotton production in accordance with the province Tam 7,000,000 dollars, and the gap 23 million piculs, namely cotton self-sufficiency rate of 25%, 75% rely on other provinces and replace imported cotton, but cotton area in our province, the output showed year-on-year downward trend. According to statistical data, in 2004 the province’s area of 614.43 hectares of cotton in 2008, dropped to 490.40 million mu, reduce 124 million, down about 20%. In 2004 the total output of cotton 502,800 tons in 2008 to 326,000 tons, 176,800 tons reduction, down 35%. Cotton shortage in our province contradiction. This year, the cotton industry suffered unprecedented difficulties. Initially due to the appreciation of the renminbi, the cost of production increase, reduction of export tax rebates, banks tightening lending to the textile industry hard. Some medium and small textile enterprises reduced production, production, export of textile products blocked. After September, the U.S. financial crisis sweeping the globe, the world economic downturn, textile exports continue to be adversely affected. To this end, this year’s cotton production, acquisition, sales are directly affected by the great impact.

First, the acquisition of late, progressing at a slow pace. Than the normal year’s harvest of cotton delayed for more than 20 days, is the latest year. Acquisition units, cotton farmers are waiting to see what level of prices, when funds become available. The acquisition of slow progress in the same period last year, lengthen the period of cotton.

Second, falling prices, lack of funds. The acquisition of the new cotton year, prices fell. Price fluctuations, so that those who dare to buy cotton; and cotton farmers a great difference between expectations, farmers Hard Trading in a Dream. Lack of funds and play the “white” is a serious problem.

Third, the operating losses, limited suspension. Unginned cotton lint processed into time-poor, such as sales of new cotton processing them, the price has dropped, the losses incurred by enterprises. In addition, a shortage of funds, limited admission, suspension of the phenomenon to occur.

Fourth, the flow of stagnation, resource costs. After the listing of new cotton, cotton spinning industry substantially reduce the demand for cotton, combined with the liquidity, so that the flow of cotton processing enterprises large backlog of finished products. Sheyang County, according to the survey, the county processing circulation enterprises to acquire the accumulated sales volume of only 40%; some lint processing one ton of unsold. In the poor cotton circumstances, be an enormous waste of resources. Sheyang County investigation, the county of about 6,000 tons (12 million piculs) selling price of cotton does not get used as a retentionfarmers. Dafeng City, due to lower than the selling of cotton to high-grade cotton blended into low-grade spent in processing and sales. The formation of a waste of resources.

Fifth, farmers complain, with an area of descending. In recent years, the cotton area, production decline reason, the price dropped year by year and the cost of increasing year by year, earnings will decline every year. This year the international economic environment is deteriorating, dealt a serious blow to the cotton production. “Difficult to sell cotton,”  phenomenon seen again, and even losses this year, cotton farmers. It is estimated that cotton farmers across the province about a loss of 540 million yuan compared with last year reduction of around 900 million yuan. State policy on agriculture has not brought much benefit to farmers. Cheap cotton injured farmers, cotton farmers suffered a serious setback in enthusiasm. The survey, cotton production in 2009 will face severe landslides, is expected to reduce about 40% of the area. Once the formation of such a situation, when world economic recovery, the textile industry turns for the better, there a shortage of cotton, and then grasping the production, the difficulty will be quite large.

In order to stabilize cotton production, the effective protection of the interests of farmers, it is recommended:

1, and take effective measures to support the development of the textile industry in our province. Textile industry is an important pillar of our province’s economy. To overcome difficulties in support of the textile industry to tide over the problems of economic development and maintaining stability, an important measure to solve the employment. The stability of the textile industry in order to effectively address the problems of cotton. Therefore, from the finance, taxation, credit and other aspects of the active support of technological innovation textile enterprises, adjusting the structure, support for textile exports, and promote domestic sales of textiles.

2, start the provincial cotton reserves. This is the current stability in the cotton market, the protection of the interests of cotton growers fast and good, effective measures. States from October 21, the first 220,000 tons Xinjiang, after continuousone million tons. December 8 re-released 1.5 million tons of cottonplan. Theseplan aimed at Xinjiang, and will take 400 large packaging. Zhejiang 200 mostly small packing cotton, the cotton issue will not solve our province. Hubei, Zhejiang, Hunan provincial-level reserves have been activated. Therefore, it is necessary to start our province cotton reserves. Recommendations provincial 50,000 tons cotton reserves, to pay for the province Reserve cotton enterprises, the quality requirements for the public prosecutor’s four more than 328 small packets of prices by 12,100 yuan / ton, the 328 package price by 12,600 yuan / ton, class differences the rate of 2 percent, the rate of 1 percent difference in length determination. The work of the provincial supply and marketing cooperativesUnity, Organization of the Provincial Agricultural Development Bank settlement of funds requested, interest, storage, insurance, management fees, spread loss (overflow), the provincial financial subsidies.

3, the development of cotton pricing policy protection. Given the volatile cotton prices, especially in recent years, falling prices, farmers interests, the formulation of the protection of cotton pricing policy and is conducive to the protection of long-term stable development of cotton. The protection of the principles set prices for cotton production cost plus a reasonable return. Also be able to examine the grain and cotton prices, cotton prices to maintain reasonable price levels. At the same time, the stability of “San Nong” of the policy, where some grain, cotton, should also enjoy. Active pilot cotton insurance system.

4, professional cooperatives to encourage the development of cotton to give a certain degree of policy support. To processing, and distribution companies as a leader, the formation of professional cotton cooperatives, is conducive to the stable development of cotton production. Unity through cooperatives for the species, a unified technology, the acquisition of a unified, unified processing, unified sales, is conducive to the promotion of fine cotton, will help improve cotton production and quality. Through deep-processing enterprises, the flow of value-added segments, you can rebate with farmers. This will reduce the farmers of this, resist risks, increase farmers income are very good. Relevant government departments through the development of the corresponding preferential policies to actively support the development of cooperatives, will be dispersed in small cotton production and big market linked to the cotton industry bigger and stronger.

5, play an active flow of cotton processing enterprises, the role of the backbone. After the liberalization of cotton, cotton processing, and distribution companies over-abundance, resulting in disorderly competition. Rush to buy fewer cotton, cotton for a long time, no one in charge of the market. Over the years, the cotton purchase and sale of the situation no one can say that clearly. Therefore, it is recommended standardizing the order of circulation, focusing on nurturing and support of cotton processing, circulation of key enterprises, the formation of scale advantages, play-conditioning market and “reservoir” role. To strengthen the statistical information on cotton and analytical work, in order to provide a basis for decision-making at all levels of leadership. At all levels should give full play to the role of Cotton Association to address the Association of funds required for its activities. As long as work together to overcome difficulties and establish confidence in our province will certainly be able to promote the healthy development of cotton industry, protect the interests of farmers.