In previous years, October was the peak season for cotton trade, but this year the cotton market started slowly. Sun Liwu, an information cotton analyst at Zhuo Chuang, said that at present, there were only 260 enterprises to buy Cotton in scale, and 1300 cotton enterprises started to purchase in the same period last year, compared with more than 2500 cotton enterprises with acquired qualifications in the country, the scale of this year's scale is only 11.8%.

Expect Cotton price The continued decline is an important reason for the sluggish sales of cotton market. Since 2011, China has implemented "temporary market" for temporary storage and storage of cotton. policy It has stabilized the domestic cotton purchase price, but with the international market price The cost of cotton imports is significantly lower than the temporary purchase and storage price.

In recent years, domestic and foreign cotton prices vary widely. In early 2014, the state started the pilot project of cotton target price reform in Xinjiang, and abolished the temporary purchase and storage policy.

After the temporary purchase and storage policy was abolished, domestic cotton prices began to link up with international cotton and entered the downstream channel. Zhang Chunyou said that at present, the price of each kilogram of seed cotton is about 5.6 yuan, and the price was 9 yuan per kilogram last year, and the price dropped by more than 30%. It is far below the cost price.

Zhang Chunyou said that because of loan repayment, workers' wages must be paid, though the price is low, and cotton must still be sold, but so many losses make cotton growers very "panic".

Ma Wenfeng, an agricultural consultancy analyst, argues that banks have tightened credit, and cotton companies have no money to buy them, which is also the cause of falling cotton prices.

Due to the drop in cotton prices and the low cotton price in Xinjiang, there is a cautious look at the demand for cotton shops. On the official website of the Central Cotton store, the reporters found that in September, 4 textile enterprises collectively broke their contracts and abandoned the cotton that they had captured more than 1000 tons.

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In September 17th, Xinjiang issued the implementation plan for the pilot project of cotton target price reform, and determined that the target price in 2014 was 19 thousand and 800 yuan per lint per lint. If the price is lower than that, the government will subsidize cotton growers in two parts according to the difference between the target price and the market price, of which 60% is subsidized by area and 40% is subsidized according to the sales volume.

At the end of September, relevant departments of the leading group office of Xinjiang cotton target price reform pilot issued a letter to the vast majority of cotton farmers to reiterate the reform policy.

"How much can we make up for it?" Zhang Chunyou said.

According to Ma Wenfeng, according to the subsidy policy, 40% of them are subsidized according to the sales volume. Because many farmers' cotton is sold directly to dealers, this may lead to cotton subsidies to distributors instead of farmers. Therefore, he appealed to all subsidies according to the planting area, so that all subsidies could go into the pockets of farmers.

Sun Liwu, an information analyst at Zhuo Chuang, said that in the middle of 10, cotton prices will continue downward in Xinjiang in the middle of next month. The downward trend of cotton prices will significantly reduce the cost of downstream textile industry, especially the local textile enterprises in Xinjiang. They also enjoy multiple preferential measures such as tariff reduction and subsidies for textile sales.