Xinjiang is moving from a cotton region to a textile region
When a cotton farmer doesn’t talk to you about the harvest, but talks about the value of the horse, you know that this industry has really changed.
This is the intuitive feeling of a cotton company CEO when he talked about the three-year pilot program of cotton target price reform in Xinjiang. Horse value is the abbreviation of micronaire, which is a comprehensive indicator reflecting the fineness and maturity of cotton fiber. Generally speaking, the higher the horse value, the better the cotton quality.
With the launch of special trains for flower pickers returning home, the cotton picking season in Xinjiang is basically over, and the focus of cotton farmers has also shifted from the selling price to the payment of subsidies. Recently, with the approval of the state, the autonomous region officially issued the “Notice on Issuing the Implementation Plan for the Cotton Target Price Reform Pilot Work in the Xinjiang Uygur Autonomous Region in 2016”. The target price level of Xinjiang cotton in 2016 is 18,600 yuan per ton, which is lower than that in 2015. 500 yuan, a decrease of 1,200 yuan per ton compared with 2014.
District moves forward.
Subsidies are more precise and cotton farmers are more practical
Recently, the Autonomous Region Cotton Target Price Reform Pilot Work Leading Group Office issued a “Letter to Cotton Farmers” and “A Letter to Cotton Sorting Enterprises”. The office put the relevant policies The key points and precautions are summarized to enable cotton farmers to grasp the policy well, sell cotton well, and harvest cotton well.
After hearing that the target price level of Xinjiang cotton in 2016 is 18,600 yuan per ton, Zhang Weijun, a cotton farmer from the 12th Regiment of the Xinjiang Corps Division who has been growing cotton for more than ten years, said on the phone that this is reassurance. , we will continue to grow cotton next year.
In 2014, after the cotton target price policy replaced the temporary purchase and storage policy, the state issued special subsidy funds directly to farmers through grassroots governments. There was no longer any leakage in the intermediate links and no more reserve cotton. Inventory expenses and interest expenses, and capital subsidy rates have increased significantly.
Wang Xinjiang, a researcher at the National Cotton Engineering Technology Research Center, said that the target price is set based on production cost plus basic income to ensure that when the cotton market price drops, cotton farmers can still obtain certain profits on the basis of making up for production costs. . During the pilot period, due to the oversupply of cotton at home and abroad, domestic cotton prices fell sharply, and cotton farmers’ income from cotton sales dropped significantly. However, because the state issued target price subsidies, farmers’ total cotton income was not greatly affected, and their benefits were better. Love and care.
Wang Xinjiang’s research data shows that if the price of seed cotton is between 6.5 yuan and 7 yuan per kilogram, you can maintain your capital, while if the price of seed cotton is above 7 yuan, you will have profit margins. This year’s target price is 18,600 yuan per ton of lint cotton. Each ton of lint cotton is equivalent to 2.5 tons to 2.6 tons of seed cotton, which is equivalent to as low as 7.15 yuan per kilogram of seed cotton.
Ma Wenjun, a cotton farmer who lives in Bajiahu Town, Jinghe County, Xinjiang, has been growing cotton for more than ten years and has always achieved good results. Since 2014, he has expanded the cotton planting area and planted 25 acres of land. The income level of the village team is above average. In 2015, he sold five tons of cotton at a price of 5.2 yuan per kilogram and enjoyed a state subsidy of 1.9 yuan per kilogram.
“Although this year’s subsidy price is a little lower than last year, fortunately, the output is high, so we can still benefit.” Ma Wenjun said.
According to agricultural product cost survey data and after adding target price subsidies, the net profit per mu of cotton grown by farmers in Xinjiang in 2015 was 188 yuan. Although it was lower than in previous years when the cotton market price was higher, But it still achieved no loss and profit.
Quality improvement, the market is forcing good cotton
Precisely because of the hedging policy in recent years, cotton farmers like Zhang Weijun now not only focus on cotton yield, but also on cotton quality.
“We consider length and micronaire value, because the higher these two values, the higher the acquisition price.” Zhang Weijun talked about these terms without any hesitation.
In 2016, Xinjiang’s cotton textile production capacity is estimated to reach 15 million spindles. If calculated based on the cotton consumption of 800 tons to 1,000 tons per 10,000 spindles of yarn, Xinjiang’s 15 million yarn spindles will use 1.2 million tons to 1.5 million tons of cotton.
Industry insiders admit frankly that Xinjiang is moving from a cotton province to a fabric province and a strong fabric province.
Related new listening
Set of subsidies will be blacklisted
On November 15, reporters learned from the office of the leading group of the autonomous region’s cotton target price reform pilot work that this year’s national cotton target price is 18,600 yuan/ton, which refers to the target price of seed cotton after converting lint into lint. . According to the new implementation plan, relevant state departments will monitor the average market price of cotton in Xinjiang by the end of this year. If the average market price is lower than the target price, the state will issue subsidies. If the average market price is higher than the target price, the state will not provide subsidies.
If the average cotton market price is lower than the target price, the state will allocate subsidy funds to the autonomous region based on the difference between the target price and the average market price, as well as the Xinjiang cotton output approved by the National Bureau of Statistics. The autonomous region will calculate the subsidy standard based on the total amount of subsidies, the planting area of basic farmers in the four prefectures of southern Xinjiang, and the total sales volume. The price difference referred to here is not the difference between the actual price of seed cotton sold by cotton farmers and the target price, but the difference between the average price of Xinjiang market and the target price after being converted into lint.
In order to ensure that everyone can get the subsidy as soon as possible, the subsidy will be paid according to the principle of “one advance allocation and one liquidation”. The pre-appropriated subsidy funds will be paid based on the statistical results of sales volume before October 31, 2016. The sales volume verification process for liquidation subsidies will end on January 31, 2017. Seed cotton sold after this date will not receive subsidies.
The reporter also learned that according to the new implementation plan, this year the autonomous region will establish a list system for untrustworthy cotton producer subsidies. After verification, cotton producers who have actually participated or falsely reported their area and falsely issued invoices and subsidies will be listed on the list. Blacklisted cotton producers will not be included in the scope of cotton target price subsidies within three years; cotton producers who are suspected of participating in subsidy fraud without reasonable explanations but without sufficient evidence will be included in the gray list, with a total of Cotton producers who have been on the gray list for two years will automatically be blacklisted.
At the same time, starting this year, the autonomous region will also establish an integrity management and governance system for cotton finishing companies to further guide cotton finishing companies to standardize their business activities. If a qualified cotton sorting enterprise is found to have serious violations of laws and regulations, it will be included in the blacklist of cotton sorting enterprises and face severe penalties. Its business reputation will also be greatly affected. The relevant invoices issued by it will not be used as payment of subsidies. Valid bills; for cotton sorting companies that have serious anomalies in the acquisition, sorting, and warehousing public inspection data, and the company cannot give a reasonable explanation, and have violated regulations and the circumstances are minor, they will be included in the gray list, and they will be included in the gray list twice in total. Cotton sorting companies are automatically blacklisted.
According to reports, in the future, the implementation of policies related to cotton target price reform will be linked to the integrity of corporate operations. Cotton farmers will choose companies with higher integrity to sell seed cotton, and companies included in the “blacklist” will It is likely to be eliminated by the market.
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