Domestic cotton prices are under further downward pressure. Output fell by 14.2%.

According to a survey conducted by the China Cotton Association, cotton output this year is expected to be about 6 million tons, a decrease of 1 million tons, or 14.2 percent. In the face of changes in cotton production and market situation, the Agricultural Development Bank of China continues to play its role as the main channel for the supply of funds for cotton purchase at a time when the purchase of new cotton is coming. At present, it has prepared a fund of 60 billion yuan to achieve "money and other cotton."

With the approval of the State Council, the National Development and Reform Commission, the Ministry of Finance and the Ministry of Agriculture jointly issued a document on April 10 this year, launching the pilot project of cotton target price reform in Xinjiang in 2014, abolishing temporary collection and storage, and setting the annual target price of cotton at 19800 yuan per ton in 2014.

Cotton target price reform policy will have a significant impact on the cotton market in 2014. Judging from the current situation, the cotton market in 2014 shows four characteristics: production continues to decline, demand has recovered, market supply exceeds demand, and price downward pressure is greater. Affected by the expected implementation of the target price pilot policy, Xinjiang's output is expected to be the same as the previous year's 4.5 million tons. After the implementation of the target price subsidy policy, cotton prices in the new year will be formed by the market, cotton prices at home and abroad will be reintegrated and linked, and domestic cotton prices will face further downward pressure. the situation of high raw material costs in textile enterprises will gradually change, and the textile industry, which has been in the doldrums in recent years, is expected to pick up gradually. It is estimated that by the end of August this year, there will be more than 11 million tons of reserves in China, equivalent to more than a year of domestic consumption. From the perspective of the international market, production has exceeded demand for five consecutive years.

According to the policy guidance of target price reform, the Agricultural Development Bank continues to play its role as the main channel for the supply of funds for cotton acquisition, and actively supports cotton acquisition based on the principle of marketization. Support purchasing and marketing enterprises to purchase cotton in the market. When the government does not intervene, it strictly supports the acquisition according to the principle of marketization; when the government steps in to back up the bottom, it follows the government and actively implements the government's policy intention. We will implement a differentiated credit policy in Xinjiang and the mainland, regard Xinjiang as the main region for the supply of funds for cotton purchase, improve the efficiency of examination and approval and payment, and ensure that the income of cotton farmers is paid in a timely manner. In the inland cotton area, enterprises are supported to carry out acquisitions according to the principle of marketization, and the realization of national policy intention is promoted through credit leverage. The Agricultural Development Bank will cooperate with the local government to do a good job in the acquisition, and will ensure an adequate supply of loans to enterprises that are qualified for loans and actually provide credit support, so as to prevent the phenomenon of "blank slips" due to lack of funds.