More than 30 million acres of cotton in Xinjiang have been purchased one after another

More than 30 million acres of cotton in Xinjiang have been purchased one after another

In recent times, more than 30 million acres of cotton in the Xinjiang Uygur Autonomous Region have been purchased by processing plants. The faces of cotton farmers who have been busy for more than half a year are filled with the joy of harvest.

“At present, cotton acquisition has come to an end.” Wang Jianhong, vice president and secretary-general of the China Cotton Association, said in an interview with a reporter from the Economic Daily that as of December 19, 2021, the nationallint cotton The cumulative processing volume was approximately 4.4863 million tons, a year-on-year decrease of 2.8%. The quality was significantly improved compared to the previous year. Recent changes in the international trade situation have brought new challenges to the development of the cotton industry. Wang Jianhong said that China’s cotton will continue to adhere to opening up and cooperation with the outside world, and changes in external factors will not hinder the high-quality and sustainable development of China’s cotton industry in the future.

Stable planting: income is getting better and better

In Yingbostan Village, Kumish Town, Toksun County, Turpan City, Xinjiang, 38-year-old cotton farmer Kremu Ahemati has been dealing with cotton for seven years. Starting in 2018, all cotton fields in Kremu have been mechanized, making cotton cultivation increasingly easier, more efficient, and more profitable.

“Beidou navigation is used for sowing, automatic drip irrigation is used for watering, and cotton picking has also been mechanized.” Kremu said that in recent years, the scale of his own cotton planting has increased year by year, now reaching more than 600 acres, and his annual net income is More than 600,000 yuan.

In recent years, as the state implements cotton target price subsidy policy for Xinjiang, agricultural machinery subsidies and land transfer and other policy support have increased, the income from cotton planting has continued Xinjiang’s cotton planting area and cotton output have increased rapidly, and its proportion in the national cotton industry has continued to increase.

“Xinjiang’s cotton output now accounts for more than 90% of the country’s total output.” Wang Jianhong introduced that Xinjiang’s cotton output, unit yield, planting area, and commodity allocation volume have ranked first in the country for more than 20 consecutive years.

Compared with Xinjiang, other provinces have seen a decline in cotton planting area year after year due to factors such as planting efficiency and planting structure adjustment. Liu Shuang, general manager of Hubei Yinfeng Cotton Co., Ltd., who was checking the processing progress in Xinjiang, told reporters that Yinfeng used to conduct business across the country, but now the entire acquisition and processing business is placed in Xinjiang.

In order to stabilize cotton production, various departments of the national cotton trading market have worked closely together to promote and implement the “professional warehousing supervision + warehouse notarization inspection” work in Gansu Province. As of November 30, 2021, the reserved cotton storage volume is 13,800 tons, and the annual storage volume is expected to exceed 20,000 tons.

Stabilizing quality: fine management is effective

In 2021, Xinjiang cotton was affected by cold air in the early stages of growth, and its growth and development was later than in 2020, and its growth was weak; the weather was good from June to August, and its growth changed from weak to strong or even better than in 2020, and picking was basically completed at the end of November. , the yield situation was worse than expected.

Judging from the survey results of the China Cotton Association on the national cotton output at the end of November 2021, the total output was slightly lower than the previous period because the yield per unit area was lower than previously expected. Liu Shuang revealed that judging from the statistical data collected by the National Cotton Quality Monitoring Center, Xinjiang’s cotton output in 2021 will decrease compared with the previous year.

Although the weather has affected the output, it has not reduced the quality. The quality of Xinjiang cotton in 2021 has improved significantly compared with the previous year. According to statistics from the China Fiber Quality Monitoring Center, the color grade, length, breaking strength, micronaire value, length uniformity and other indicators of Xinjiang cotton have all improved significantly compared with the same period in 2020.

Liu Shuang said that Xinjiang’s good light and heat conditions, coupled with the improvement of cotton subsidy policies and the meticulous management of water and fertilizer from seeds to planting, have played a role in improving the quality of Xinjiang’s cotton.

The degree of mechanization of cotton planting in Xinjiang continues to increase. Wang Jianhong introduced that in 2021, the proportion of cotton picked by machines in northern Xinjiang will exceed 90%, and the proportion of cotton picked by machines in southern Xinjiang will be close to 80%. Equipment owners who work on the front line of cotton harvesting have made huge profits. Abdulwaili Hugamati, a villager in Inbostan Village who bought two forklifts, can earn 80,000 yuan in just one month of loading and unloading cotton during the cotton harvest season.

Stable prices: what processing companies hope for

In 2021, the purchase price of seed cotton opened high, and then the price began to fall. On November 18, China’s cotton price index reached a maximum of 22,713 yuan/ton. After that, as new cotton came on the market in large quantities and reserve cotton continued to be released, companies had more optional resources, and cotton prices showed a downward trend.

“In the early days of the acquisition, the increase in domestic and foreign cotton prices accelerated, and both futures and spot prices hit a new high in the past 10 years.” Wang Jianhong recalled that China’s cotton price index was 21,947 yuan/ton on December 23, 2021, which was still higher than Importcotton prices. If the average purchase price of Xinjiang seed cotton is 10.5 yuan/kg, the price of lint cotton is 22,893 yuan/ton. The market price is already lower than the processing cost, which poses greater operating risks to processing companies.

Liu Shuang told reporters: “The acquisition cost in 2021 should be more than 50% higher than the previous year.” He believes that in addition to overcapacity, there is also a reduction in cotton production, a rush to harvest during acquisitions, andBulk commoditiesprices are affected, and many factors have pushed up the acquisition price.

On the one hand, high cotton prices can�As a result, ginners will suffer losses when purchasing high-priced cotton and find it difficult to sell. On the other hand, it will create risks for downstream cotton, textile, and clothing productionexport.

According to feedback from many cotton manufacturers, the production cost of lint cotton in 2021 is mostly around 23,000 yuan/ton, but the current acceptable raw material prices for spinning companies are mostly in the range of 21,000 yuan/ton to 21,500 yuan/ton. In previous years, most manufacturing companies were able to successfully arbitrage spot inventory after futures prices provided hedging opportunities. However, the spot price in 2021 was seriously inverted, causing ginning companies to lose hedging opportunities.

Wang Jianhong suggested that suspending the release of reserve cotton and increasing import quotas will help alleviate the pressure of spot cotton price inversion, narrow the price difference between domestic cotton and imported cotton, and boost the sales of domestic cotton.

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