Two Ministries And Commissions Promote The Coordinated Development Of Cotton Strategic Material Industry Chain

The National Development and Reform Commission and the Ministry of Finance recently issued a notice on improving the implementation measures of the cotton target price policy, continuing to implement the cotton target price policy in Xinjiang and improving the implementation measures. This has played an important role in ensuring the income of cotton farmers, stabilizing cotton production, mobilizing the enthusiasm of cotton farmers, and promoting the coordinated development of the industrial chain.

Cotton is an important agricultural product and a national strategic material. Cotton and its closely related textile industry, while meeting the people's needs for clothing and home furnishing, have also absorbed a large number of labor forces, driven the development of local economy, and made important contributions to national taxation and foreign trade. China has a pivotal position in the global cotton and textile market. It is the largest cotton producer, importer and consumer in the world, and also the country with the most complete textile industry chain and the most complete categories in the world. In recent years, China's cotton production has maintained about a quarter of the global total, and its consumption is close to one third of the global total. The booming cotton industry has strongly supported the development of China's textile and clothing industry.

Since the second half of last year, due to weak international demand, abundant supply and other factors, cotton prices have some downward pressure. On the one hand, inflation in the United States and Europe continues to be high, and the risk of economic recession is rising, which has affected consumer confidence and curbed overseas textile and clothing consumption. On the other hand, the global cotton supply is relatively sufficient, and the inventory level is at a high level. Affected by the structural contradiction between supply and demand, the "triple inverted" phenomenon of purchase and sale prices, spot prices and domestic and foreign cotton prices has appeared in the market, and the enthusiasm of cotton farmers has also been affected to some extent. In general, the cotton industry is facing certain challenges. It must adapt to the new situation, strengthen goal orientation and problem orientation, and take multiple measures to promote the quality improvement of the whole cotton industry chain.

We should effectively stabilize domestic cotton production. Stable production is the basis for high-quality development of cotton industry. As the main cotton production place in China, Xinjiang has the advantages of good quality and high output. Expanding Xinjiang's cotton production is the primary task to stabilize domestic supply. In the context of low cotton market prices, it is particularly important to attach importance to the policy guidance of Xinjiang cotton and improve the cotton target price policy. At the same time, traditional cotton producing areas outside Xinjiang should be encouraged to combine local conditions and focus on cotton production protection areas to complete cotton planting tasks, so as to effectively promote cotton seed expansion.

The cotton industry should be promoted to improve quality and efficiency. To promote high-quality development of cotton industry, efforts should be made in quality, efficiency, brand and other aspects. We should promote the main cotton producing areas to include cotton fields in the construction of high standard farmland, improve infrastructure such as tractor roads and irrigation and drainage ditches, and improve the comprehensive production capacity of cotton fields. We will strengthen personnel training, strengthen scientific and technological innovation, focus on key technologies in the cotton industry, and make breakthroughs in breeding, planting, agricultural machinery, production intelligence and informatization. It is necessary to optimize the cotton market environment, improve the quality standards, certification and evaluation, green development and other aspects of the system construction, and promote the development level of the industry. Further enhance the market awareness and reputation of Xinjiang cotton and other key varieties, and establish sustainable brands.

We should promote the coordinated development of the cotton industry chain and supply chain. Maintaining the stability of the supply chain is an important guarantee for the healthy development of the cotton industry. In the whole cotton industry chain, the upstream is planting, the midstream includes ginning, circulation, textile, clothing processing and other links, and the downstream is sales and trade. The coordinated development of the whole industry chain should be used to promote the development of the industry, and the synergy of production, processing, circulation, textile, clothing and other links should be constantly strengthened to improve the quality and market competitiveness of China's cotton. Lead market demand with high-quality cotton supply, drive category innovation in textile and clothing industry, and form a win-win situation for cotton farmers to increase income, cotton industry to increase efficiency, and textile and clothing industry to benefit.

We should strengthen the prevention and control of cotton market risks. As an important commodity, cotton has both commercial and financial attributes. In recent years, under the background of frequent supply shocks, unstable external demand and drastic adjustment of monetary policies in the United States and Europe, cotton prices have fluctuated dramatically. Especially since last year, cotton prices have remained low, bringing certain risks to cotton farmers and production and trade enterprises. We must put more emphasis on preventing and defusing risks. On the basis of stabilizing market supply and demand, we must strengthen the joint supervision of futures and spot markets, crack down on malicious speculation, and prevent cotton prices from fluctuating significantly.