New cotton harvest begins, why is the cotton industry in southern Xinjiang mixed?

According to China Rural Voice’s “Three Rural China” reports, in 2014, my country launched a three-year cotton target price pilot in Xinjiang, a large cotton-producing region. This year is the year of acceptance of the pilot work. . What changes has the target price brought to Xinjiang cotton farmers and cotton-producing areas in the past three years? What are the prospects for cotton cultivation in the future? During the cotton picking season, China Rural Voices personally visited Xinjiang’s cotton areas to help you understand the real cotton market conditions.

At the gate of a cotton gin factory in Yetaigeranmu Village, Uluchole Town, Aksu, Xinjiang, cotton farmers who came to hand over cotton were queuing up on tractors. Cotton farmer Aihemati• Maimaiti told reporters that they are waiting for the factory’s purchase inspection before handing over the cotton.

Reporter: Are you all here to hand over cotton? How much cotton did you hand in this year?

Aihemati•Maimaiti: 2 tons of cotton cost 7 yuan and 40 cents. Last year it was 8 yuan and 3 cents, which is lower than last year. I grow long-staple cotton. Not this year. The price of picking cotton is relatively high this year, 800 yuan less per acre. It is also used for fertilizer, seeds, plastic film, and drip irrigation. An acre of land costs 1,500 yuan. The price of cotton is getting lower every year.

When it comes to prices, cotton farmer Yassen Zaiti told reporters that Xinjiang cotton has two trends this year. One is the high-quality cotton variety promoted in the area where he grows it – long-staple cotton. Compared with ordinary upland cotton, this kind of cotton has long fibers and is popular in specific markets, but the yield is low and the market purchase price is relatively high. This has attracted many cotton farmers to follow suit. Coupled with good rain this year, production has increased rapidly.

Reporter: How is the production this year?

Yassen Zaiti: The output is higher than last year. Last year it was more than 200 kilograms, and this year it is more than 300 kilograms.

Reporter: Has cotton started to be sold to cotton farms? what is the price?

Yassen Zaiti: I went to sell it this morning. It was more than 5,200 kilograms. The purchase price was 7.6 yuan. The price was low. I planted upland cotton five years ago. Because the price of long-staple cotton was higher than that of upland cotton, I switched to this one.

The other type is general cotton, which is called upland cotton in the industry. Upland cotton, which had been stagnant for several years, turned around and became the owner this year. The purchase price increased from 6.3 yuan last year to about 7.3 yuan. Cotton farmer Aihetaimu Uma Genyazi contracted 60 acres of upland cotton to grow. After excluding all fertilizer, pesticide, labor and other costs, the net income in a year is 50,000 yuan.

Ahetai Mu·Uma Genyazi: 10 tons have been sold, and the average price is 7 yuan and 30 cents. Last year, upland cotton was more than 6 yuan, and the average price was more than 1 yuan more.

In response to the problem of inverted cotton prices at home and abroad, and in order to explore the road to gradual marketization of cotton prices, in 2014, my country ended the protective price purchase policy for Xinjiang cotton and launched a three-year Target price subsidy pilot policy.

Implement target prices, and if the market price exceeds the target price, the state will not intervene. If the market price is lower than the target price, the state provides subsidies to cotton farmers. From 2014 to 2016, my country’s cotton target price levels were 19,800 yuan, 19,100 yuan and 18,600 yuan per ton respectively. Since the implementation of the target price subsidy pilot policy, domestic cotton prices have fallen rapidly, and the price difference between domestic and foreign cotton has narrowed rapidly. However, due to state subsidies, the market losses of cotton farmers have been well compensated. In 2014 and 2015, the average subsidy received by Xinjiang cotton farmers was about 444.0 yuan and 497.5 yuan per mu. With the target price subsidies, the net profit of Xinjiang farmers from cotton planting per mu was 164.4 yuan and 89.5 yuan respectively. This can be done while domestic and foreign cotton prices continue to be depressed. Planting cotton is profitable and profitable without losing money.

Cotton farmers’ income is guaranteed, but in years like this year when cotton prices rise, cotton finishing companies bear the cost of seed cotton finishing. At the seed cotton ginnery of Tianquan Cotton Co., Ltd. in Aksu Prefecture, this old factory, which has purchased upland cotton for 20 years, is troubled by the high cost of cotton acquisition this year.

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