Recently, the National Cotton Market Monitoring System Xinjiang Office came to Awati County, China's "hometown of long-staple cotton", to investigate the cotton planting situation in the new year.
It is reported that in 2018, about 840,000 mu of long-staple cotton was planted in Awati County. It is estimated that the area of long-staple cotton in Awati County will drop dramatically in 2019, which is about 50-600,000 mu. The main reason for the decline is that mechanical harvesting has not been popularized yet, the cost of artificial harvesting is high, and the yield is lower than fine-staple Co In addition, this year, about 200-300,000 mu of new land was transferred. With the increasing proportion of machine-picked cotton in Southern Xinjiang, companies that took over after land transfer are more willing to plant fine lint cotton. It is understood that this year, the area north of Awati County also suffered from continuous rain and hail attacks, and suffered serious disasters. At present, it is in the process of replanting and replanting. The production of long-staple cotton in 2019/2020 needs to be re-evaluated.
High-quality cotton is the basis of producing high-end cotton textiles, but because of the high investment in long-staple cotton planting, the income level is often not as expected, which gradually no longer favored by farmers, the contradiction of interests between cotton production and demand is increasingly apparent. From the perspective of cotton planting, according to the cotton farmers, in 2018/2019, the cost of long-staple cotton planting (including pickup costs) is about 250 yuan/mu, the yield per unit area is about 250 kg/mu, and the price of seed cotton is between 8.9 and 9.4 yuan/kg. Even with subsidies, it is still not as good as choosing other varieties. From the perspective of spinning production, although the domestic demand for long-staple cotton is not large, it has always existed. Such a substantial reduction in planting is likely to bring limitations to cotton procurement in the coming year, and the interests of enterprises using high-grade cotton (especially in Xinjiang) will be damaged.
The contradiction of interests between production and demand of long-staple cotton has long attracted attention. At present, the special cotton such as long-staple cotton is subsidized according to 1:1.3 in Xinjiang's target price reform, and the "high quality and high price" pilot project of cotton target price reform has been carried out many times and many places. In the increasingly delicate environment of international trade relations, most enterprises believe that the transfer orders are limited to conventional, middle and low-grade products, high value-added products will remain at home, and will not be lost with the escalation of Sino-US trade disputes. Similarly, the demand for long-staple cotton has always been there. How to balance the interests of the industrial chain may depend on the next round of cotton target price reform.