2015 New Plan Of Xinjiang Cotton Target Price

Xinjiang has released its 2015 annual report.

The implementation plan of target price reform pilot work should be adjusted to cotton direct subsidy.

Most of the regions will subsidize cotton farmers on sale.

What will happen to the cotton market after such an adjustment?

It is reported that it is time to harvest cotton in Xinjiang, but the scale is not good.

In the past two days, Sun Liwu, an analyst, is studying cotton market in Xinjiang. He learned that this year's scale is slightly lower than that of last year.

Sun Liwu: in the north of Xinjiang, it is slower than the southern Xinjiang, which is between 5 and 5 to 6 blocks. From the overall situation of lint cotton, the profit of cotton processing enterprises is not very good.

Sun Liwu introduced that cotton prices were not ideal because of market terminals.

And processing enterprises are not willing to buy, the processing rate is relatively low, plus the commencement time is 10 days to 15 days than in previous years, the market is waiting for the new cotton concentrate listing stage.

The national cotton market monitoring system released in May this year, the national cotton sowing area survey data show that the actual sowing area of Xinjiang in 2015 was 30 million 998 thousand mu, a decrease of 8.9% over the same period last year.

However, according to Sun Liwu's investigation, although Xinjiang controls the planting area, the output is expected to be good.

Sun Liwu: judging from the growth of cotton, the overall yield is good this year. The total output is expected to remain above 4 million tons, with a smaller decrease.

Sun Liwu is not very optimistic about the new cotton market after its listing.

He believes that the domestic cotton spinning enterprises are not good at present, and it is difficult to boost morale in a short time. Cotton prices will hardly rise in the future.

Especially in the mainland, cotton purchasing prices may still fall below last year's prices.

Sun Liwu: the mainland, especially

The area, north of Shandong Province, Binzhou and Dongying, is affected by continuous rainy weather, and cotton is affected to varying degrees.

The processing enterprises are facing the problem of resource reduction. The quality of each area may be uneven, which makes the processing enterprises worried. As a whole, the market price has been postponed. This year, the market price is expected to be 14000 higher than that of last year. The market is likely to be 13000 this year, and the possibility that it will fall below 13000 will be relatively large.

However, good news has also arrived recently.

Xinjiang No. 14 announced the implementation plan of the cotton target price reform in 2015.

According to this plan, from September this year, 90% of the total amount of the central subsidy will be supplied to cotton farmers by sale. The remaining 10% will be subsidized by the 4 Southern Xinjiang prefectures of Kashi, Hotan, Akesu and kiriz Kirgiz Autonomous Prefecture.

In September last year, the state carried out the pilot work of cotton target price in Xinjiang for the first time, while canceling temporary storage and storage of cotton.

In those years, 60% of the central subsidy fund was allocated according to the cotton planting area, and 40% was supplementation according to the actual sales volume.

Futures analyst Li Li pointed out that the biggest change this year's reform plan compared with last year is that this is a subsidy dominated by output.

Li Li: according to the amount of sale actually, cotton from September

The continuous sale is how much to fill.

It was reported that the area, for example, in order to get subsidies, reported planting area of 10 acres of land, actually planted only 6 acres, so that someone will occupy the loophole.

This year the report area only accounts for 10%, 90% is according to the sales volume, so how much actual delivery can take.

How to ensure that cotton farmers get subsidies? This year, the subsidy scheme has been adjusted.

In the past, Xinjiang cotton "direct subsidy" was issued on behalf of the cotton collecting enterprises, and the cotton receiving enterprises applied to the state for subsidy payments according to the subsidy invoices issued to cotton farmers.

In this regard, Li Yan, director of Xinjiang Fiber Inspection Bureau, said that in practice, there was a phenomenon of false invoices issued by enterprises, which applied for subsidies to the state and occupied the interests of cotton farmers.

Li Yan: if he only collected 50 tons of cotton, but he made 100 tons of invoices, so many 50 tons can be invoiced, but the central government has a total amount. Xinjiang's cotton is about 4000000 tons a year. The central government will give so much money. If Xinjiang's enterprises are to export 10 million tons of cotton, what should we do? That is, the subsidies of Xinjiang farmers have been diluted.

In order to protect cotton farmers' interests and build trading platform, Xinjiang has established third party warehousing organizations this year to ensure cotton quality while protecting cotton subsidies from being squeezed out.

Li Yan: a professional third party warehouse, how much cotton he has collected and how much lint he has processed is calculated. In supervising warehouses, putting cotton here for weight inspection, he can determine how much cotton he receives and limit the number of invoices he has issued, so the whole subsidy is orderly.