Cotton price reenacts “Roller Coaster” Development and Reform Commission brewing and regulating the New Deal

Recently, the cotton research team formed by the National Development and Reform Commission, the National Supply and Marketing Federation, and the China Reserve Cotton Management Corporation ended field research in Jiangsu, Shandong, and other places, and is currently working on policies for the implementation of the New Year's cotton purchase and storage plan. According to officials from the National Development and Reform Commission, the “New Deal for Cotton” focuses on the strategic positioning of cotton and other agricultural products, the relationship between upstream and downstream cotton industrial chain, and the relationship between imported cotton and domestic cotton, in order to stabilize domestic cotton prices and prevent The ups and downs of cotton prices have happened again.

From August of last year to August of this year, domestic cotton prices are like “roller coasters”, rising from 17,000 yuan per ton to 34,000 yuan per ton in March this year. Afterwards, it fell from 34,000 yuan / ton to the current nearly 20,000 yuan / ton, close to the minimum purchase price of 19,800 yuan / ton for new cotton as stipulated in the national "2011 cotton temporary storage and storage plan". According to the aforementioned officials from the National Development and Reform Commission, the purchase of the State Reserve Cotton will start on September 1st and there will be no limit to the amount of storage. Around the acquisition of the new cotton policy, the National Development and Reform Commission will successively announce specific purchase and storage methods and details of purchases and storages, including implementation measures for purchase and storage of pre-planned transactions, and calculations of reference prices for seed cotton purchases.

The aforementioned officials of the National Development and Reform Commission stated that the large fluctuations in cotton prices involved not only cotton farmers, but textile companies and cotton traders in the entire cotton industry chain also suffered different degrees of damage. Therefore, while formulating policies, the National Development and Reform Commission started from the middle of August and took the lead in organizing the cotton research team to conduct in-depth research among textile companies, local governments and cotton farmers in Jiangsu, Shandong and other places. The suggestions from the government and enterprises are mainly concentrated on two aspects. First, it is suggested that the state should increase the amount of storage and storage of cotton, and the second is to increase support for the purchase of funds by textile companies.

The official revealed that the National Development and Reform Commission is also formulating a strategic “New Cotton Policy” while formulating policies for the collection and storage of new cotton purchase and storage plans. The focus is to further address the strategic positioning of cotton and other agricultural products. The relationship between upstream and downstream of the industrial chain, and the relationship between imported cotton and domestic cotton, prevents the occurrence of domestic cotton price volatility again.