Xinjiang Cotton Target Price Reform Plan Will Be Announced Soon

In September 3rd, according to the national development and Reform Commission,

In 2014, the pilot project of cotton target price reform was launched in Xinjiang.

Approved by the State Council, the target price of cotton in 2014 has been announced to be 19800 yuan per ton; the pilot scheme of cotton target price reform has been issued to the pilot areas; the implementation plan of the new market price monitoring scheme for Xinjiang cotton has been worked out; the price monitoring work has been started; the implementation plan of the cotton target price reform pilot work of the Xinjiang autonomous region and the regiment will be announced soon, and the work is steadily advancing.

In order to ensure the smooth progress of the target price reform pilot program and maintain the smooth operation of the new cotton market after the listing, the state will adopt comprehensive measures to strengthen market regulation.

First, the new cotton market will stop selling cotton reserves and create favorable market conditions for the purchase and sale of new cotton.

Two is to do a good job in the acquisition of new cotton, and guide enterprises and farmers to actively buy and sell.

Three, we should arrange imports properly and encourage enterprises to make more use of domestic cotton.

The four is to set up a plan for underpinning. When the price of cotton in the domestic market is over falling and selling difficultly, it will take necessary measures to encourage enterprises to buy in the market, stabilize the market and solve the problem of "selling hard".

According to the latest survey of China Cotton Association, it is estimated that China's cotton output will be reduced by 1 million tons or 6 million tons this year, with a reduction of 14.2%.

The target price reform policy will have a significant impact on the cotton market.

Judging from the current situation, the cotton market in 2014 shows four characteristics, such as the continued decline in production volume, demand recovery, market oversupply and downward pressure on prices.

Xinjiang is subject to the expected target price pilot policy, and its output is expected to be unchanged from 4 million 500 thousand tons a year ago.

At the end of August this year, there were about 11000000 tonnes of domestic stockpiles, equivalent to 1 years of domestic consumption.

From the international market, supply has exceeded demand for 5 consecutive years.

After the implementation of the target price subsidy policy, the new year's cotton price will be formed by the market, and the domestic and foreign cotton prices will be reintegrated and linked together.

Faced with further downward pressure, the situation of high cost of raw materials in textile enterprises will gradually change. In recent years, the textile industry with a continuous downturn is expected to pick up gradually.