CCA held cotton situation analysis meeting

Source:China Cotton Association  Date: 03/November/2008

Since new cotton come to market this year, cotton purchasing and selling meet the "winter ". Influenced by global economy, the textile enterprises' producing and selling is depressingly, the export is obstructed, the cotton price drops continuously, have already broken the production cost at present. The country absorbs 220,000 to support the market, and the falling price slow down the speed, but that does not control the gliding situation yet. Cotton has already been picked more than 80%, but purchasing volume is few, the market is in the mood of pessimistic. On October 29, CCA held the cotton purchasing and selling forum that participated by some cotton growers, corporate member's representatives of cotton and textile, and invite related departments such as National Development and Reform Committee, Department of Commerce, the Ministry of Agriculture, General Administration for Industry and Commerce, Agricultural Development Bank to attend the meeting to listen the voice of front lines, analyze the situation in the future, study the countermeasure of regulation and control, establish trade confidence. Each side of representatives think unanimously that present situation is overall difficult, not only in cotton industry and textile industry, and It is global problem, not only China's economic. Face the unprecedented difficulty, the government should play a leading role; each side of industry should work hand in hand to cross the difficulty together. Everybody proposes this year is a special year, unusual time need unusual operation, and suggest the policy as follows: 1. Increase the state reserve volume, expand reserve regions to inland, not only in Xinjiang, and set up the central and provincial two grades store system to arouse local finance's strength. 2. Set a minimum protect procurement price, calculated on the basis of the state reserve price. Request that companies with ADB loans procure seed cotton as much as possible and not "Double Zero"in loan and interests at the end of season in order to protect farmers' interests. 3. Decrease cotton import volumes and control the rhythm in order to boost sales of domestic cotton. 4. Support the textile industry through measures such as adjusting tax rate, increasing the export rebate rate and increasing financial support for mills to buy cotton. 5. Devote more efforts to propagating, promote trade confidence. The related departments of the government and association devote more efforts to propagating, urge the cotton growers to sell the cotton, enterprises to buy cotton, reinvent trade confidence. 6. Establish long-term market policies such as subsidy system and support Large-scale cotton group. On the same day of meeting, the country released a notice to continue absorb 1 million tons cotton to state reserve including inland cotton at the price 12600 yuan per ton, that have shown the country's resolution to steady cotton market.
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