The cotton purchase and storage in < p > 2013/2014 is coming to an end. Recently, people familiar with the matter learned that the total inventory of cotton and cotton in China has exceeded 10 million tons. However, due to weak demand, coupled with competition from imported cotton, < a href= "http://m.pmae.cn/news/index_c.asp" > reserve cotton < /a > is in an awkward situation of indigestion. Experts believe that as the main producing area of Xinjiang is about to start the pilot project of cotton target price subsidies, the situation of "dominate the cotton market", such as "purchase and storage price, throwing reserve price, market price, import price" and so on, will end. < /p >
Between P and 2010 to 2011, China's a href= "http://m.pmae.cn/news/index_c.asp" > cotton market < /a > fluctuated sharply. In order to protect cotton farmers, the state implemented the temporary purchase and storage policy for three consecutive years, and carried out the de market acquisition of cotton, thus ensuring the domestic cotton prices. However, the side effects were followed. In the next few years, the domestic cotton purchase price far exceeded the international cotton price, and cotton textile enterprises were struggling because of the high cost. < /p >
< p > "in the long run, it is always problematic to use protective price buying. Now, the total amount of cotton stored in the central storage cotton has exceeded 10 million tons, and there is no way to digest it. At the same time, the total volume of imported cotton has exceeded 4 million tons. People familiar with the matter told reporters that the high two data is an important reason for the rapid start of cotton target price subsidy pilot. < /p >
< p > this year's Central Document No. 1 puts forward that the pilot project of "Xinjiang cotton < a href=" //m.pmae.cn/news/index_c.asp "target price < /a > will be launched within the year. According to the CPPCC National Committee member and Chen Xiwen, deputy director of the central rural work leading group, the so-called target price subsidy is that when the market price of agricultural products is higher than the target price announced by the government, the government subsidized the low-income urban consumers. Similarly, when the market price of agricultural products is lower than the target price announced by the government, subsidies should be made to farmers. < /p >
< p > Wang Jiliang, member of the CPPCC National Committee, said that if the policy of temporary purchase and storage is carried out for a long time, it may lead to derailment of the cotton market and the market economy. Therefore, price subsidies from Xinjiang, the main cotton producing area, are now forced by the situation. < /p >
< p > Wang Jiliang said that the target price must be related to the main cotton producing areas to conduct in-depth research. If the target price is not well established, it will reduce the income of cotton farmers, but will affect the overall production of domestic cotton in the future. < /p >
< p > people familiar with the matter said that because the cotton purchase and storage of the year is coming to an end, it is not expected that the detailed content of Xinjiang target price subsidy pilot will not be too long. This also means that the situation of multiple prices leading the market will end in the past, such as "reserve price, reserve price, market price and import price". However, the cotton market, which has already formed the habit of purchasing and storing, will have a significant concussion after the lack of purchasing and storage policy support. There may be a big slide in the price, but in the end, domestic cotton prices will gradually move closer to the international cotton prices. < /p >