Re Interpretation Of Cotton Target Price Policy

< p > April 5th, the national development and Reform Commission announced that the target price of "a" href= "//www.sjfzxm.com/news/index_c.asp" > cotton < /a > in 2014 was 19800 yuan per ton.

This is the first clear policy on the announcement of cotton target price since the promulgation of the Central Document No. 1 this year.

One stone stirs up thousands of waves, but it is difficult to come up with all the details of the subsidy rules. All kinds of speculation and worry about the cotton market are mainly concentrated in three aspects: first, what is the meaning of the target price of 19800 yuan / ton? Two, if the purchase price falls to the bottom, will the cotton farmers be reluctant to sell? Will Xinjiang breed a national problem? What should the mainland cotton growers do? If the cotton is cheap and hurt the farmers, will they continue to start purchasing and storing? Three, what is the price of the operating enterprises? What is the impact of the target price on the operation of the cotton enterprises in 2014? < /p >

< p > China Cotton Storage Information Center has closely monitored the whole process of target price policy from brewing to formulation because of undertaking the monitoring task of national cotton market monitoring system.

As a result, we feel that all kinds of speculation and reasoning are actually misunderstood by many people.

We try to re interpret the core essence of the cotton target price policy, the meaning of the target price in 2014, the relationship between the subsidy rules and the market and so on, so as to provide references for all parties in the market.

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< p > < strong > 1, the core of cotton target price policy.

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< p > to understand cotton target price policy, we must firmly grasp the two core essence: first, the spiritual essence of "playing the decisive role of the market in the allocation of resources" in the third Plenary Session of the 18th CPC Central Committee.

Replacing the temporary purchasing and storage policy with target price subsidies is a manifestation of the decisive role of the market in cotton pricing and resource allocation.

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< p > we believe that if we understand the spiritual essence of the decisive role of the market, we need not speculate or look forward to whether the policy will go backwards and whether it will be opened up again.

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< p > two is the national food security strategy.

The current government has put the national security at an unprecedented level, of which food security is one of the foundations of national security.

In 2014, the Central Document No. 1 clearly stated that "sticking to the rice bowl firmly in our hands is the basic policy that must be adhered to for a long time in running a country."

This can be interpreted as that the cultivated area in our country is very limited, and the limited farmland is the basic policy of governing the country.

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< p > we believe that if we understand the essence of the national food security strategy, we do not need to speculate about how the cotton area is smaller.

Xinjiang cotton area has obvious advantages in cotton planting, and of course it will become a national guarantee for the basic safety of cotton supply.

The only way out for cotton growing areas in the mainland is to work hard on cotton quality and cotton scale efficiency. Otherwise, the benefits of cotton growing are difficult to guarantee, but this does not mean that farmers' income is insecure, and farmers can turn to better food or other crops.

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What is the target price of < p > strong > 2 and 19800 yuan per ton? < /strong > < /p >

< p > 2014 cotton target price is 19800 yuan per ton. The industry is more puzzled. Is this the price of seed cotton folding lint or the price of processed lint? < /p >

< p > according to the consultation with relevant departments, the target price of 19800 yuan per ton is the price of seed cotton processing to lint, that is, the comprehensive processing cost of 1000 yuan per ton on the basis of seed cotton and lint price.

In theory, the subsidized (per ton) =19800 yuan seed cotton price is -1000 yuan.

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What is the actual yield of cotton farmers under target price < p > strong > 3? < /strong > < /p >

< p > theoretically speaking, in the area where the target price is pilot, regardless of the price of cotton seed sold by cotton farmers, the actual income of cotton growers is 19800-1000 yuan per ton of lint, or 18800 yuan.

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< p > how much subsidy can cotton farmers actually get? Before the specific rules come out, they can only be measured in principle.

According to the national cotton market monitoring system, the average annual yield of seed cotton per mu in Xinjiang was 318 kg in the pilot area, and 127.2 kg in lint 40% according to 40% lint.

According to the gross estimate of 2 yuan per kilogram of cottonseed, in theory, the income of cotton producers per mu in Xinjiang is 2392 yuan +120 yuan =2512 yuan.

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< p > specific income to each a href= "//www.sjfzxm.com/news/index_c.asp" > cotton grower < /a > depends on the subsidy rules in the pilot area, such as Xinjiang, which is supplementation by the producers according to the average yield per unit area or the actual sale of seed cotton.

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< p > strong > 4, how to make up? When can the producer's subsidy income be obtained? < /strong > < /p >

< p > this depends on the implementation details, but we think it is only a question of time for producers to get subsidies.

If publicity is in place, producers should be able to tolerate enough.

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The target price policy announced in April 5th P clearly pointed out that "when the market price is lower than the target price, the state will subsidize the producers in the pilot area according to the difference between target price and market price, planting area, production and sales volume."

Based on cotton purchase after the traditional peak season, producers need to return all kinds of loans. After the end of the acquisition season (Xinjiang is 9-12 months), the relevant departments of the state according to the actual market price monitoring results and the 2014 area, production monitoring results and other factors, timely accounting for the amount of subsidies and immediately issued, is a larger probability event.

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< p > < strong > 5, is there any subsidy for cotton farmers in the mainland? < /strong > < /p >

< p > according to the spirit of Central Document No. 1 and the spirit of the cotton target price policy announced in 2014 in April 5th, the pilot project in Xinjiang has been established.

Whether there is any subsidy for cotton farmers in the mainland depends on whether there are any updated policy announcements.

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< p > strong > 6, what price should the cotton purchasing processing enterprise accept? < /strong > < /p >

< p > market price.

The so-called market price is the price that cotton farmers are willing to sell or buy.

Cotton farmers in the pilot area of target price can not worry about purchasing price theoretically, but in the early stage of purchase, they do not rule out the consideration of traditional inertial thinking or cash as king.

For the pilot area, the judgement of the acquisition company on the market situation in 2014 is the key to the decision to purchase the market price.

For non pilot areas, cotton growers and buyout companies are all the decision-makers of the actual market price.

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< p > < strong > 7, what is the impact of target price policy on the operation of cotton enterprises in 2014? < /strong > /p >

< p > the biggest impact is the need to regain market management philosophy.

Operate with market thinking.

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< p > < strong > 8. Is it possible to cancel the temporary purchase and storage after the purchase? < /strong > < /p >

< p > cancellation of temporary collection and storage policy refers to the abolition of the open and unlimited purchase and storage policy since the 2011 limit of "a href=" //www.sjfzxm.com/news/index_q.asp "< < /a > > and" 2012 ".

It is not the same thing with the state reserve cotton purchase and storage policy.

According to the current effective regulations, the state reserve cotton policy is still one of the means for the state to regulate the cotton market.

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