Do Not Let Cotton Prices Fly Again; &Nbsp; &Nbsp; Enterprises Call For Reform.

"Cotton prices are falling and yarn prices are falling even more.

Because

For cotton textile enterprises, cotton

The plan clearly sets the price.

The lowest purchase price will eventually take place.

In recent years, because the benefits of seed cotton are lower than grain crops, with more cotton planted, low mechanization, more labor and difficult service, the enthusiasm of farmers to grow cotton has been affected, resulting in the continuous reduction of cotton planting area and the decline of cotton output throughout the country.

Xu Wenying, vice president of China Textile Industry Association and honorary president of China Cotton Textile Industry Association, said that the surge in cotton prices since last year reflects the contradiction between supply and demand and the result of speculation.

As the state subsidized grain production and cotton was not planted, cotton production declined and cotton yarn output increased, making supply and demand more and more contradictory.

Therefore, encouraging the enthusiasm of planting cotton, expanding the planting area and increasing the yield per unit area are of great significance to the development of the textile industry, to meet the needs of the vast number of consumers, and to promote the economic development.

Encouraging farmers to grow cotton is a top priority of macroeconomic regulation and control.

In recent years, China Cotton Textile Industry Association has been actively recommending to the relevant state departments, imitating subsidies for grain farmers and putting cotton planting in the scope of financial subsidies.

The industry has also been calling on the government to introduce a minimum protective price measure for cotton farmers to protect farmers' enthusiasm for growing cotton.

The eight departments of the national development and Reform Commission, the Ministry of finance, the Ministry of agriculture, the Ministry of industry and information technology, the Ministry of railways, the State General Administration of quality supervision, inspection and quarantine, the supply and Marketing Cooperative head office, the China Agricultural Development Bank and other departments jointly issued the 2011 cotton temporary purchase and storage plan in March 31st. They decided to implement the cotton flower temporary storage and storage system from 2011, so as to stabilize the market expectations of cotton producers, operators and cotton enterprises, protect the interests of cotton farmers and ensure market supply.

According to the analysts, the more significance of the policy is to stabilize the forthcoming cotton sowing, and to further consolidate the growth of the planting area. The industry has been appealed for years to launch the "seed cotton purchase protection price", which is also the protection of the long-term stable operation of the cotton price, and is an effective measure to improve the supply and demand contradiction in the long run.

Related textile enterprises responsible person believes that the introduction of the 2011 cotton temporary purchase and storage plan will reduce the risk of cotton market fluctuations to cotton farmers, and is conducive to the stability of domestic cotton market.

However, the temporary cotton purchase and storage price determined by the temporary cotton purchase and storage plan in 2011 may be low.

According to calculation, the new price of 19800 yuan / ton in the new year will be stored at the bottom price of lint. According to the current cotton seed price, roughly the new flower purchase price is about 10 yuan / kg, which is lower than the current futures and spot prices.

In addition, in order to strengthen the regulatory role of cotton reserves and increase the regulation function of the national cotton reserves on the cotton market, some textile enterprises in charge suggest that the state import cotton reserves at the right time to ensure that there are 2 months or so of cotton consumption.

Highlight the problem of low deduction

Enterprises hope to solve chronic diseases

With the increase of production cost, the problem of "high taxes and low deduction" of value-added tax on cotton raw materials has become more and more prominent.

According to the current VAT system, the input tax rate of cotton procurement execution in China's cotton textile enterprises is 13%, while sales products perform 17% value-added tax, that is, the sales tax rate is 17% of product sales, while the deductible tax rate for purchasing cotton is calculated by 13%.

For a long time, the difference between the 4 percentage points has been borne by the textile enterprises themselves.

Because the cost of cotton material accounts for more than 70% of the production cost of cotton textile enterprises, the high value-added tax of cotton raw materials has greatly increased the cost of the enterprise.

According to the survey of VAT of China Cotton Textile Industry Association in 2009, the difference between 4 percentage points and tax increases the tax and fee of cotton textile industry by about 5000000000 yuan.

In recent years, with the rising price of raw materials and the increasing cost of labor, the profit margins of cotton textile enterprises have been constantly squeezed.

According to investigation and statistics, after deducting the cost of cotton, the production cost and profit space of pure cotton combed 32 yarn yarn per ton decreased from 7300 yuan in 2000 to 3995 yuan in January 2010.

According to the analysis of industry experts, the deep processing of cotton is different from other agricultural and sideline products processing. The seed cotton sold by farmers is not directly sold to the spinning enterprises. Instead, the cotton processing plants are made from cotton seed processing to lint for cotton, and lint should belong to industrial products, and the value-added tax should be collected at 17%.

Because farmers sell seed cotton without paying taxes, the virtual deduction tax rate for cotton processing plants can be adjusted to 17%.

Thus, although the cost of cotton lint purchasing lint is increased, the value-added tax of cotton yarn is also 17%, which is in line with the principle of value added tax equalization.

Sun Yingan, chairman of Hubei Xiao cotton industrial Refco Group Ltd, pointed out that the input tax of the current value added tax deduction of cotton spinning enterprises is deducted by 13%, the output tax is deducted by 17%, the tax burden of enterprises is heavy, and the low profit level has affected the technological progress and structural adjustment of the industry, and the level of employee's labor and capital is also difficult to improve.

As a deputy to the National People's Congress, he mentioned this problem many times in the two sessions. He hoped that when the state was pulling domestic demand, it should pay attention to the increase of workers' income in the labor-intensive industries besides the fixed assets investment.

By adjusting taxes and other measures to improve the profitability of enterprises, so that enterprises can increase the profit portion to the workers' income.

Foreign cotton prices are higher than domestic prices.

The abolition of import slip tax is high.

Because of the double regulation of cotton import quota and sliding tax, the tax burden of textile enterprises has been increased, which is not conducive to the use of global cotton resources, and the call for adjusting cotton import slip tax policy is high.

Industry analysts believe that foreign cotton prices have been much higher than domestic prices, the implementation of imported cotton quasi tax rate is no longer necessary.

Because the price of imported cotton is unlikely to appear below 11397 yuan / ton at this stage, which is higher than the current price of 570 yuan / ton. According to the current import price, the actual import tariff is less than 2%.

Due to the import quota control, it has effectively ensured the import of cotton according to the gap. It is recommended to adjust the cotton import slip tax policy to implement the subsidy to cotton seed, so as to protect the interests of farmers as well as the textile enterprises.

All along, China has adopted import quotas to control the cotton market, and the quota has been allocated according to the cotton gap to control the import quantity effectively.

In 2005, in order to protect the interests of farmers, the state also introduced the import slip tax of 5%~40%. Double regulation led to a long period in China's cotton prices higher than the international market, making Chinese cotton textile products not at the starting line with other countries in international competition.

Since 2005, China has introduced a quasi tax rate for newly added Cotton other than 894 thousand tons, that is, when importing cotton, when the price of cotton in the international market is lower than that in the domestic market, the sliding tax will be levied, so that the price of imported cotton will be kept equal to that of domestic cotton.

Although the implementation of sliding tax has played an active role in promoting domestic cotton sales, stabilizing domestic cotton prices and protecting cotton farmers' enthusiasm for cotton planting, the textile industry has undertaken heavy tax burden.

Cotton textile enterprises are forced to lower wages to maintain production and export. Cotton textile enterprises demand the abolition of the sliding tax on the basis of quota control.

Xu Wenying pointed out that the ups and downs of cotton prices once again proved that the marketization reform of the cotton industry is the general trend. We should give full play to the basic role of market allocation of resources and support cotton textile enterprises to make full use of the two international and domestic resources under the premise of enhancing the competitiveness of cotton production.