Wang Xiaobing: Cotton target price pilot is very healthy for cotton industry development
On October 18, 2014, Zhengzhou Commodity Exchange held the 2014 Zhengzhou Agricultural products (Cotton) Futures Forum in the conference hall of Zhengzhou Commercial Institute. From the point of view of the sustainable and healthy development of the cotton industry, Wang Xiaobing, deputy director of the Market and Information Department of the Ministry of Agriculture, said that since China is a big cotton grower and sometimes a big cotton consumer, the healthy development of the cotton industry is very important to our national economy. The contradictions and problems accumulated by the previous cotton temporary collection and storage policy have become increasingly prominent, and it is becoming more and more difficult to rely on the policy to stabilize production and the market, while the third Plenary session of the 18th CPC Central Committee clearly put forward the need to speed up the improvement of the price form mechanism of agricultural products. pay attention to the role of the market in forming prices. Therefore, the state decided to carry out the cotton target price pilot project in Xinjiang and cancel the temporary collection and storage policy. The implementation of this policy is very important for the development of China's cotton industry. The following is Wang Xiaobing's speech:
Distinguished guests, Ladies and Gentlemen, Friends, good morning! It gives me great pleasure to come to Zhengzhou Commodity Exchange, the first commodity futures exchange in China, to participate in the 2014 Zhengzhou Agricultural products Futures Forum. Zheng Shang Institute pays great attention to the operation of the cotton market, and a special forum was organized in Beijing in the first half of this year. Today, a forum on cotton futures is once again held, which is of great significance to correctly guide the trend of the cotton market in the new year. I would like to take this opportunity to extend warm congratulations on the grand convening of the forum on behalf of the Market and Economic Information Department of the Ministry of Agriculture.
China is a large country of cotton production and consumption, and the cotton industry is related to the income of cotton farmers, the operation of the textile industry, and the development of economy and society. The CPC Central Committee and the State Council unanimously attach great importance to the development of cotton industry. A series of policies, including subsidies for cotton grain seeds and temporary collection and storage, have been introduced, which have effectively promoted cotton production and market stability. It is estimated that the cotton area will be reduced to more than 63 million mu this year under the guidance of the policy. The output is about 6.5 million tons, which is probably less than that produced last year, but the per unit yield and quality have been improved. In recent years, with the changes of the economic environment at home and abroad, the development of China's cotton industry is facing a new situation and challenges. Agricultural production has entered a stage of high input and high cost, especially the labor cost continues to rise rapidly. it is more and more difficult to ensure the stability of year-end income, the linkage between international and domestic markets is enhanced, cotton prices at home and abroad are obviously upside down, and it is more and more difficult to maintain the safety of China's cotton industry. The contradictions and problems accumulated by the temporary cotton collection and storage policy have become increasingly prominent, and it is becoming more and more difficult to rely on the policy to stabilize production and market. how to deal with these new situations and challenges? To promote the sustained and healthy development of China's cotton industry has become a realistic and important issue that we must study and solve.
The third Plenary session of the 18th CPC Central Committee clearly proposed that it is necessary to speed up the improvement of the price form mechanism of agricultural products, pay attention to the role of the market in forming prices, and make specific arrangements in accordance with this major decision-making document No. 1 of the CPC Central Committee this year. It is determined to carry out a pilot project on the target price of cotton in Xinjiang and abolish the temporary collection and storage policy. This is an innovative measure to improve the price policy of agricultural products under the new situation. It is of great significance to protect farmers' interests, enhance market vitality and promote industrial development. The pilot project of cotton target price reform should not only promote the competitiveness of cotton industry through market-oriented reform, but also provide experience and reference for the price formation of other important agricultural products and the establishment of market regulation mechanism. New cotton has been listed on the market this year, and we are actively cooperating with the relevant departments of development and reform, finance, and the Xinjiang Autonomous region Government and Xinjiang Construction Corps to do a good job in the monitoring of market prices, the calculation of subsidies, the evaluation of policies, and other work. At the same time, in view of the new situation and new problems in the cotton industry, our Ministry continues to promote the distribution and adjustment of cotton production, increase the research and development and popularization of new technologies, especially heavy and major technologies such as factory seedling raising and mechanized harvesting, and further do a good job in the implementation of relevant support policies to ensure the basic stability of cotton production and supply.
Practice at home and abroad has shown that the futures market has the function of price discovery and hedging, and plays an irreplaceable role in improving the price mechanism of agricultural products. This year is the first year of the pilot project of cotton target price reform. We believe that Zheng Shang can stand at the overall and strategic height, further improve cotton futures trading rules in accordance with the requirements of the central deployment, and resolutely prevent excessive speculation. Correctly guide cotton farmers and cotton-related enterprises to actively participate in cotton futures trading, and make due contributions to the reform of cotton target price and the establishment of market formation price mechanism. Finally, I wish this forum a complete success, thank you!
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