The First China Cotton Textile And Chemical Fiber Industry Summit Forum

The first China cotton textile and fiber industry summit was held in Xiaoshan, Hangzhou on the 26 th. Over 300 cotton industry and upstream and downstream enterprises of textile and chemical fiber industry chain were present to discuss the response to the new situation of "collecting and storing up the cotton market" under the new situation.

Experts attending the meeting believe that China will stop buying and storing cotton from this year and turn it into a direct subsidy policy for cotton farmers, which will strongly stimulate the marketization reform of cotton yarn and related industries, but the details of the relevant subsidy schemes need further improvement and implementation.

China has explicitly suspended the implementation of the cotton purchase and storage policy from 2014, and gradually converted to a policy of direct subsidy to cotton farmers.

The national development and Reform Commission and the Ministry of Finance formally issued the implementation plan for the implementation of the pilot project of cotton target price reform in Xinjiang in September 16th, marking the official start of the cotton direct subsidy reform and the prelude to the market-oriented reform of cotton and upstream and downstream industries.

Yang Hongsen, general manager of Xinhua Zhejiang commodity trading center, believes that after the implementation of Cotton Subsidy Policy, the "invisible hand" of the market will play a decisive role in related industries in the future.

However, many cotton textile business owners at the meeting suggested that the national cotton subsidy policy has just been released, and the industry is generally in a wait-and-see state. They dare not act hastily, especially with regard to cotton price movements and other problems.

Spot trading platform to meet the textile enterprise risk hedging, commodity procurement and investment demand.

Gao Yong, vice president of the China Federation of textile industry, said that due to China's previous cotton purchase and storage policy, the domestic and foreign cotton prices were relatively large, while the high quality and low price of the national cotton reserves highlighted the burden of the cotton enterprises.

He also pointed out that the current rule of direct subsidy has not yet been promulgated, and because the cotton industry at home and abroad,

The level of productivity is quite different, and how to make up and supplement it is rather complicated. The relevant departments should carefully study and clarify it, otherwise, it may cause market confusion and have adverse effects on textile and other related industries.