Cotton target price reform starts Agricultural Development Bank 60 billion yuan to ensure "money, etc."

In order to cooperate with the target price reform of cotton, Agricultural Development Bank of China proposed for the first time this year to implement differentiation strategy in Xinjiang and the mainland, taking Xinjiang as the focus of credit support, preparing 60 billion yuan of funds and continuing to add funds according to the acquisition needs, so as to ensure that the acquisition enterprises "keep on file"

Xinjiang in November, snowflakes have fallen. As the largest commodity cotton producing area in China, Xinjiang's cotton purchase work has basically ended in previous years, but this year's cotton purchase work has just been more than half. Reporter research found that although the degree of harvesting mechanization is improving, but this season cotton due to natural disasters and production and late maturity, coupled with international cotton prices fell, cotton farmers wait and see reluctant to sell, enterprise acquisition is also relatively cautious.

"We're waiting for the rice, but the acquisition speed is a little slow." Hu Xiaolun, chairman of Yikang Group in Shaya County, Xinjiang, said: "This year, the Agricultural Development Bank of China has given us a credit of 1 billion yuan to help us buy cotton, but at present there are not many cotton farmers who come to deliver goods. Everyone is waiting and seeing."

At present, Xinjiang per kilogram of seed cotton price of more than 6 yuan converted into lint cotton about 14000 yuan per ton, from the target price reform of 19800 yuan per ton cotton still has a considerable distance, cotton farmers hope that the price can rise in the near future, but in fact, the international cotton high yield caused by the price drop has been transmitted, price rise is very difficult.

It is understood that this year is the first year of cotton target price reform, the previous government "support market acquisition" model completely changed, the price will be determined by the market, the difference by the government subsidies. This year, the state no longer sets the minimum purchase price, but combines the planting area, and then takes 19800 yuan per ton as the target price, according to the average market transaction price from September to November, draw a collection price, assuming 14000 yuan per ton, that is lower than the target price difference (i.e. 5800 yuan per ton), will be directly supplied by the government to cotton farmers.

As the main supplier of cotton purchase funds, Agricultural Development Bank has played a particularly significant role this year. "Last year, there were still many commercial banks willing to lend, but this year it was all supported by Agricultural Development Bank. Before the acquisition began, 200 million yuan of bottom fund had already been put in place, ensuring the normal development of preliminary work." Li Cheng, general manager of the Cotton and Cotton Company of the First Division of Xinjiang Production and Construction Corps, said that since the subsidy funds will not be released until the acquisition is over, it is more critical that the funds in this year's acquisition link can be "money and cotton".

In order to cooperate with the cotton target price reform and considering that Xinjiang is the main cotton producing area, Agricultural Development Bank of China proposed for the first time this year to implement differentiation strategy in Xinjiang and inland, taking Xinjiang as the focus of credit support, making every effort to guarantee the supply of cotton purchase funds in Xinjiang and promoting the smooth implementation of target price reform. At the same time, considering that relevant market entities have a familiar process with the new policy environment, in order to fulfill the responsibilities of policy banks and guarantee the supply of acquisition funds, Agricultural Development Bank has drawn a bottom line for acquisition, that is, there shall be no "white strip" phenomenon for cotton purchase among Agricultural Development Bank loan enterprises, nor systematic credit risk.

"Under the new situation, the demand for funds for cotton purchase is still very large. In order to ensure the smooth progress of acquisition, Agricultural Development Bank has prepared 60 billion yuan of funds, and will continue to add according to the acquisition needs to ensure that the acquisition enterprises supported by Agricultural Development Bank are 'on file'." Agricultural Development Bank related responsible person said.

In order to improve the efficiency of supplying cotton purchase funds and give consideration to credit risk prevention and control, Agricultural Development Bank has selected a number of high-quality enterprises as important carriers to support acquisition and scientifically arrange purchase fund supply outlets. Taking Xinjiang as an example, Xinjiang Branch of Agricultural Development Bank of China actively contacted with the Development and Reform Commission of the Autonomous Region and other departments this year to obtain the authorization qualification of cotton target price subsidy in the Autonomous Region as a prerequisite. There are 238 enterprises with loan qualification, 560 ginning factories and processing capacity of about 4.5 million tons, which can basically meet the cotton processing needs of Xinjiang and leave no blank points in the layout of cotton purchase outlets.

"Excluding weather and other factors, from the current cotton purchase situation of our bank, cotton purchase, processing, reservation warehousing, public inspection and other aspects are progressing smoothly. The whole pilot work starts well, operates normally and orderly, and has achieved preliminary results." According to Ding Xingui, vice president of Xinjiang Branch of Agricultural Development Bank, as of October 24 this year, Xinjiang Branch of Agricultural Development Bank has issued 19.532 billion yuan of cotton purchase loans in 2014 to 222 enterprises, supporting the purchase of 1.17 million tons of lint.