The most direct role is to reduce the number of enterprises.

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Some textile enterprises in charge believed that with the implementation of the cotton target price reform, the domestic cotton price and the international cotton price were close, and the operation cost of the enterprises dropped a lot.

Zhang Guangxin said that the cotton target price reform reduced the average price of cotton by 6000 yuan / ton compared with the same period last year, which effectively reduced the raw material cost of textile enterprises and increased the cost of raw materials.

The market competitiveness and profitability of enterprises.

Liu Weidong pointed out that after the target price reform pilot project, cotton prices were formed by the market, and the market price of cotton has been further closer to the international cotton price. The cost of cotton production has decreased by more than 30%, and the competitiveness of textile enterprises has been gradually enhanced.

At the beginning, after the direct subsidy policy was implemented by the state,

Will be led by the market, theoretically broke the past "temporary purchasing and storage policy" on the domestic cotton price direct "bottom" and intervention, cotton spot market price downward possibility greatly enhanced, troubled cotton textile enterprises for many years high cotton price problem is expected to be eased.