Is Cotton Import Quota And Rotation Policy Correct Or Wrong?

The national cotton market monitoring system released the latest cotton growth survey report. As of the end of June, the growth of cotton in the the Yellow River River Basin and the northwest inland area was basically normal. Flooding in the Yangtze River Basin had an impact on cotton growth, and the picking time was expected to be delayed.

In 2016, the total output is expected to reach 4 million 839 thousand tons, a decrease of 7.2% compared with the same period last year, and cotton production will be further reduced. Will there be any change in the relevant policies (cotton import quotas and round out policy)?

The first is cotton import quotas.

Subject to the huge domestic reserves, China began to control the import of cotton in 2014. In addition to the additional 894 thousand tons of tariffs imposed by the WTO, the import quota of cotton is no longer increased in principle. Moreover, the customs and competent departments have increased the examination and supervision of the "entrustment import" and "entrust imports". In the past 2011-2013 years, the influx of large quantities of imported cotton has disappeared.

And imported cotton began the confrontation between Chu and Han.

After the issuance of the reserve cotton rotation policy in 2016, cotton prices at home and abroad were further linked and gradually approached. At this time, the cotton price outside the 894 thousand ton tariff quota completely lost the advantage of cost performance. The domestic textile enterprises could only use the reserve cotton to a certain extent, which accelerated the consumption of cotton reserves.

Although the scale of reserves is declining in an orderly way under the stimulus of the reserve cotton rotation policy, the total volume is still huge.

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Therefore, the market is expected to liberalize cotton import quota policy next year.

At present, the downstream textile enterprises hope to continue to increase the volume of output. The reason is that cotton prices have gone up too fast, resulting in the decline of corporate profits and the lack of competitiveness of products.

It is difficult to judge whether there will be any change in the policy of rotation. But one thing is certain. No matter whether the policy changes, the goal of national regulation must be to ensure cotton spinning.

Smooth operation.

Next is the policy of reserve cotton rotation.

In 2016, the state adjusted the reserve scale to a reasonable level in order to reduce the stock of reserve cotton, and adopted the principle of "asymmetric rotation, first round and backward entry, multiple rounds of production and fewer rounds" to reduce the reserve scale gradually, steadily and effectively. In principle, every year, from March to August, the national statutory work was arranged on average every day for sale of reserve cotton on sale.

Under the situation of imbalance between supply and demand of cotton quality and quantity, the imported cotton and domestic cotton of national reserve have eased the stock worries of downstream textile enterprises in time.

As of July 15th, the total output of the reserve cotton reached 1 million 332 thousand and 900 tons, and the half target plan was successfully completed.