Financial Support For Cotton Industry

At present, the Tarim cotton region in southern Xinjiang has been exposed to high temperatures and light.

Starting from south to north, the largest cotton producing area in the country will enter the new cotton picking season in early September.

Cotton is the lifeblood of cotton textile industry.

Cotton production affects the development of cotton textile industry and the interests of cotton farmers.

To promote the stable and healthy development of the cotton industry chain is not only related to the structural adjustment and pformation and upgrading of China's textile industry, but also the basic guarantee for China to build a strong textile country.

Xinjiang is the largest cotton planting base in China.

As of 2011, Xinjiang has achieved the first cotton area, output per unit area, total output and output in 19 consecutive years.

This year, Xinjiang cotton sown area of about 24000000 mu, an increase of 660 thousand mu over last year.

The total output is expected to reach 3 million 200 thousand tons, an increase of about 100000 tons over last year, close to half of the total cotton output in the country.

However, with the continuous increase of cotton planting area and total output in Xinjiang, the market environment has changed significantly this year.

In the first half of the year, domestic textile enterprises generally suffered losses, and the demand for domestic cotton was greatly reduced. In addition, the national credit policy was tightening up.

What kind of answer will Xinjiang cotton face this year? What measures will be adopted at all levels of finance to support Xinjiang's cotton production and promote the increase of cotton growers and industrial development?

Advantage and severe market situation coexist

Cotton is the leading industry in Xinjiang's agricultural and rural economy, and cotton production accounts for about 60% of the per capita income of farmers.

However, due to the complex economic environment at home and abroad, the global consumption of textile and clothing has shrunk dramatically, and the global supply of cotton has been seriously oversupplied in 2011-2012.

At present and in the future, Xinjiang's cotton industry is facing unprecedented market risks and severe tests.

Recently, the reporter learned from the Xinjiang cotton working teleconference meeting that in 2012, Xinjiang cotton sown area of 24 million 700 thousand mu, an increase of 660 thousand mu over the previous year, with an estimated output value of 3 million 200 thousand tons, representing an increase of 120 thousand tons over the previous year, accounting for about 49% of the total cotton output in China. In the case of the gradual withdrawal of cotton production in the mainland cotton region, Xinjiang will still achieve an increase in cotton area and a bumper harvest, and cotton growers still expect high income.

For many years, especially in the new century, Xinjiang has been aiming at the fluctuation and increasing risk of the cotton market, and adheres to the policy of "stabilizing area, optimizing the layout, focusing on production per unit area, increasing total production, reducing costs, saving water and increasing efficiency, strengthening market adaptability and enhancing the competitiveness of the cotton market". The area has been reduced to 20 million mu from the highest 28 million mu, and its output has reached over 2 million 500 thousand tons. It has maintained the status of the largest commercial cotton base in the country, and is the largest cotton producing area in the country. As of 2011, Xinjiang has achieved the first cotton area, output per unit area, total output and output in the 19 consecutive years, and has made positive contributions to the development of cotton production and textile industry in China.

According to statistics, Xinjiang's cotton output accounts for 47.98% of the total in 2011-2012, and the proportion will reach 49.69% in 2012-2013. It is expected that the proportion of Xinjiang cotton will continue to rise in the whole country along with the gradual degradation of cotton growing areas in the mainland.

At the same time, cotton is the leading industry in Xinjiang's agricultural and rural economy. Cotton production in main production counties accounts for about 60% of the per capita income of farmers. Therefore, Xinjiang is also a key area for stabilizing cotton production and ensuring cotton production safety in China.

But in such a better production situation, the risk of cotton market is increasing.

Affected by the world economic recovery is weak, the European debt crisis continues to spread and the domestic investment slowdown in the complex economic environment, the global textile and apparel consumption has shrunk dramatically. At the same time, the record high cotton price in last year stimulated the enthusiasm of global cotton planting. The global cotton supply in 2011-2012 serious surplus, cotton prices continued to decline.

At present and in the future, Xinjiang's cotton industry is facing unprecedented market risks and severe tests.

In addition, reporters from the autonomous region supply and marketing cooperatives and Xinjiang Cotton Association has been informed that August is the traditional peak season for textile enterprises, but the market turnover is still light, although domestic spot prices continued to rise slightly, but the recent domestic and foreign cotton futures prices continued to weaken, market confidence was weak, and the difference between domestic and foreign cotton prices, the domestic market sales were more and more depressed.

And the key link of the cotton industry chain, the textile industry economy has encountered great difficulties this year, generally showing the situation of insufficient start-up, production growth, product sales sluggish, significant decline in efficiency, insufficient development potential, and the economic operation of the industry is also very grim.

Combined with many factors, Xinjiang and cotton will face difficulties in oversupply of cotton market, downward trend of cotton prices, difficulties in domestic cotton sales and weak demand pull in textile industry.

Financial support for cotton industry

The central government has covered all kinds of subsidies for cotton varieties in Xinjiang. From 2007 to 2012, the central government allocated 1 billion 133 million 860 thousand yuan for cotton seed subsidy in Xinjiang, and the proportion of agricultural machinery purchase subsidy increased from 7% to over 9% in the main cotton producing areas in Xinjiang.

In addition, in order to solve the problem of high pportation cost of cotton and cotton yarns in Xinjiang, central finance has formulated and promulgated Xinjiang cotton.

Freight subsidy policy.

Faced with these difficulties, in recent years, the Party committee and the people's Government of the autonomous region have attached great importance to and convened meetings many times, and timely convened various functional departments of the autonomous region responsible for cotton production, processing, storage, pportation and marketing, and studied the situation of cotton internationally and internationally, and actively sought state support, scientifically judged the situation and deployed various work.

It is understood that in order to promote the sustained and healthy development of Xinjiang's cotton industry and speed up the promotion of Xinjiang's fine cotton varieties and increase the income of cotton farmers, in 2007, the central government incorporated Xinjiang into the range of cotton varieties subsidies. In 2009, the central government made full coverage of the implementation of improved varieties subsidies for cotton in Xinjiang. From 2007 to 2012, the central government allocated 1 billion 133 million 860 thousand yuan of cotton seed subsidy in Xinjiang, and combined with the implementation of the national agricultural machinery purchase subsidy policy, the purchase of agricultural machinery by Xinjiang cotton farmers.

With the increase of polarity, the proportion of agricultural machinery purchase subsidy increased from 7% to more than 9%.

The finance has formulated the policy of freight subsidy for Xinjiang cotton and cotton yarn; in 2010, in order to further promote the employment and upgrading of cotton industry in Xinjiang, the central government put the products of Xinjiang real estate cotton net, cotton viscose blended yarn and viscose pure spinning yarn into the allowance of 400 yuan per ton from 2009. That is, the sales of cotton, cotton yarn and cotton yarn products in Xinjiang were given a subsidy of RMB $400 per ton. As of 2010, the autonomous region's enterprises within the autonomous region sold 2 million 457 thousand and 100 tons of cotton to the mainland and enjoyed the central subsidy fund of 983 million yuan. The mainland's cotton purchasing and processing enterprises benefited from the mainland reached 240 annually, and sold 987 thousand and 400 tons of cotton textiles, cotton nets and other cotton textiles to the mainland, enjoying 395 million yuan of the central subsidy fund, and the benefit of the cotton textile enterprises reached about 100 per year. At the same time, in order to solve the problem of high pportation cost of cotton and cotton yarns away from the mainland sales area in Xinjiang, the central government began in 2008.

Since 2011, the central government has further intensified its efforts to support Xinjiang's cotton industry.

Last August, the Ministry of Finance issued a notice on the adjustment of the policy on the subsidy policy for the freight of cotton and cotton, and decided to continue to grant the freight allowance for cotton and cotton yarn in the period of "12th Five-Year", and put the cotton products into the subsidy range on the basis of the original policy, and the subsidy standard was raised from 400 yuan per ton to 500 yuan / ton.

At the end of 2011, the Ministry of Finance formally promulgated the corresponding subsidy management method. According to the new subsidy policy, in 2012, the Ministry of finance has allocated 150 million 490 thousand yuan for the 301 thousand tons of cotton and cotton products in Xinjiang in 2011. Funds have been allocated to related enterprises, and the financial support funds of the autonomous region are also paid at the same time.

At the same time, the central financial pilot implemented the policy of agricultural insurance premium subsidy work, Xinjiang was included in the first batch of pilot provinces and autonomous regions, and the central and western regions central subsidies 40%, provincial subsidies 25%, the rest by local county finance, farmers, leading enterprises shared.

In the past 2007-2011 years, Xinjiang has allocated 2 billion 100 million yuan of agricultural insurance subsidy funds from all levels of finance, of which 1 billion 785 million yuan has been subsidized by cotton planting insurance, of which 662 million yuan is the central government, 458 million yuan for the autonomous region and 262 million yuan for the local governments.

In 2012, Xinjiang's finance also allocated a special fund of 20 million yuan for the implementation of the demonstration project of high yielding cotton production. The funds were mainly used in two aspects: first, the comprehensive cultivation mode of Mu Mu mechanized cotton production, and the establishment of a high-yield and efficient demonstration area in 17 main cotton producing counties in Xinjiang. The area of each demonstration area is not less than 5000 mu, and the subsidy funds for each county are 100-120 yuan. Two is the breeding and purification project of the fine varieties of cotton.

Construction mechanism temporary storage system normalization

In order to prevent the ups and downs of the cotton market and ensure industrial stability, in 2011, the state normalized the measures of temporarily collecting and storing lint in the main producing areas, and established a temporary cotton storage and storage system.

The cotton purchase and storage work in 2012 is about to start. It is estimated that the Xinjiang branch of the agricultural development bank will issue a new year's new cotton purchase loan of 56 billion yuan, and continue to support the country's policy of benefiting farmers.

In the face of severe market situation and bumper harvest, the Xinjiang Autonomous Region Party committee and the people's government held 4 important meetings on cotton harvest and storage and marketing in August, and issued 3 government documents, such as the urgent notice to do a good job in the new year's cotton work, to make a comprehensive deployment of cotton work.

It focuses on strengthening the new cotton purchase and storage policy publicity and guidance, strengthening cotton quality and market supervision, strengthening cotton production management in the later stage, doing a good job in cotton purchasing and pportation, increasing financial support, ensuring adequate supply of cotton purchasing funds, strengthening cotton safety management, and actively supporting national system policy support. Seven key tasks are put forward: specific requirements and detailed deployment.

Reporters also learned from the financial department of the autonomous region that, in order to prevent the cotton market from going up and falling to ensure the stability of the national cotton safety and the cotton spinning industry, in 2011, the state normalized the measures of temporarily collecting and storing lint in the main producing areas, and established a temporary cotton storage and storage system.

In 2011, the temporary storage and storage price of lint was 19800 yuan per ton. This year's temporary storage price is 20400 yuan per ton. In order to ensure the benefit of cotton farmers, the reference price of cotton purchase has been linked to the purchase price of seed cotton. The storage enterprises must purchase cotton seeds at the price of not less than the seed cotton purchase price, and the storage enterprises that do not carry out the reference price of seed cotton purchase, and the cotton association will be included in the industry blacklist.

Practice has shown that the implementation of the temporary cotton purchase and storage policy has effectively stabilized the cotton market price, raised the confidence of cotton farmers in Xinjiang, and made cotton storage and storage stable and orderly.

In addition, the Xinjiang branch of the Agricultural Development Bank of China, in 2011, focused on the main line of "acquiring insurance, stabilizing the market, adjusting the structure, controlling risks and promoting development". The acquisition and credit policy worked smoothly, relying on the temporary purchase and storage policy, and made full efforts to promote the loan collection. The results of the acquisition and lending were obvious. As of July 31, 2012, the Xinjiang branch of the Agricultural Development Bank issued 2011-2012 new cotton purchase loans to 50 billion 999 million enterprises, 50 billion 999 million yuan, an increase of 25 billion 50 million yuan over the same period last year, an increase of 96.53%, and support for the acquisition of 2 million 494 thousand tons of new cotton, an increase of 1 million 311 thousand tons over the same period last year, an increase of 110.82%.

The cotton purchase and storage work in 2012 is about to start. It is estimated that the Xinjiang branch of the agricultural development bank will issue a new year's new cotton purchase loan of 56 billion yuan, and continue to support the country's policy of benefiting farmers.

Reporters also learned that before the press release, Xinjiang has recently played a new role in supporting the role of supply and marketing cooperatives.

Work, Xinjiang will start from 2013, the autonomous region fiscal 3-5 years to gradually digest the autonomous region supply and marketing cooperatives system local policy 780 million yuan loss principal, in order to reduce the supply and marketing cooperatives in the autonomous region historical burden, in 2012, the autonomous region finance first arranged 30 million yuan of funds.