Southern Xinjiang: Ginning factories should be cautious when pre-harvesting seed cotton

In early to mid-September, hand-picked cotton in Kashgar, Aksu, Korla and other cotton areas in southern Xinjiang began to be harvested and put on the market. The ginners shifted from trial harvesting and rolling to opening scales to rush harvest (mainly processing cotton cotton orders in the early stage). Although 2021/ It will still take about 10 days to harvest machine-picked cotton in 2022, but the purchase and processing of Xinjiang seed cotton has slowly begun.

Judging from the survey, as of September 9, about 20-30 cotton gins have been opened in Kashgar. More than 10 cotton gins have taken the lead in acquisitions in Kuqa, Shaya, and Xinhe in Aksu. The surrounding areas of Aksu (mainly Xidaqiao) cotton gins also began to harvest seed cotton trafficked by cotton brokers in the Kashgar area.

Except for cotton brokers, seed cotton sales still adopt a pre-sale model – sample inspection, weighing, unloading but no pricing and settlement. Most ginners verbally agree with farmers within 15 or 30 days from the date of sale. To settle the payment at the factory at any time (according to the listed price of the acquiring company on the day), some ginneries promise to settle at the highest purchase price during the settlement period. Farmers do not have to worry about weather changes (such as rainfall, strong winds, etc.), insufficient storage conditions, etc., and the settlement price is only high, not low. For ginners, part of the seed cotton resources are locked in advance, and no fees are paid during the settlement period, which alleviates the company’s cash flow pressure to a certain extent. On the surface, seed cotton pre-sale is a “win-win” situation. The author believes that companies should be cautious when pre-harvesting seed cotton: First, disputes are prone to arise during payment settlement; second, pre-harvest of seed cotton by ginners has led to more intense rush-buying in surrounding areas.

AAA

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