Many policies are now loosening the cotton textile industry to usher in the spring?

Recently, a number of policies involving the cotton spinning industry have become loose. Some policies that have long restricted the development of the cotton spinning industry are currently being gradually adjusted. However, this does not mean that the development of the cotton spinning industry will be immediately destroyed. Experts suggest that the future of the cotton spinning industry is still not optimistic. Enterprises still need to take relevant measures to deal with it.

This year, policies involving the cotton spinning industry have been frequent.

The pilot program of direct compensation for cotton farmers in Xinjiang, the temporary collection and release of cotton, and the “higher and lower deduction” policies have all been adjusted and loosened. It is not difficult to see that under the active appeal of all parties, the policy of restricting the development of the cotton spinning industry for a long time is currently being gradually adjusted. Does this mean that various problems that restrict the development of cotton spinning enterprises are expected to be solved? Cotton spinning business will usher in spring?

According to industry insiders, although related policies are being loosened, no specific practical measures have been seen so far. It is still too early for cotton spinning companies to get out of trouble.

The favorable policy of Xinjiang cotton target price subsidy trial was initiated, and reserve cotton sales were adjusted. Anhui Province took the lead in including lint and cotton yarn into the scope of the input tax value-added tax deduction for agricultural products, and under the efforts of many parties, many policies related to the development of cotton spinning industry Loose in 2014.

The cotton policy has inspired many textile companies. With the efforts of many parties, the cotton policy has finally loosened. On January 19 this year, the Central Document No. 1 proposed that in 2014, the target cotton price subsidy pilot project for Xinjiang will be launched. On April 5, the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Agriculture jointly announced the 2014 cotton target price of 19,800 yuan per ton.

At the same time, reserve cotton sales have also been adjusted. On March 28, the National Cotton Exchange Market, China Reserve Cotton Management Corporation, and China Cotton Textile Industry Association issued an announcement. Since April 1 of this year, the relevant policies on reserve cotton sales have been adjusted and the number of cotton reserves purchased by textile companies has been removed. The reserve price for auctions was adjusted from RMB 18,000/ton to RMB 17,250/ton, and the ratio of imported cotton for the bidding reserves was 3:1.

According to the announcement, during the deposit of reserve cotton, any textile company that purchases warehouses in Xinjiang to store domestically produced reserve cotton can bid for reserve imported cotton at a ratio of 3:1. The announcement also stressed that since April 1st, the number of textile companies that have purchased cotton in reserve has been removed. The reserve cotton purchased is limited to transfers between textile companies and must not be channelled to other channels. Newly applied textile companies do not need to pay 500,000 yuan to prevent the "round cotton" margin.

In addition to the aforementioned changes, the “high and low deductions” that have long plagued the textile industry have also been adjusted.

All along, the “high-learning and low-buckle” has a great impact on cotton spinning companies. The main raw material of cotton textile enterprises is cotton. The cost of cotton accounts for about 70% of the total production cost. If it is calculated according to the sales tax rate of 17%, it is for cotton spinning enterprises. It is a small sum of money.

At the end of last year, the announcement of the Anhui Province State Taxation Bureau and Anhui Provincial Department of Finance on expanding the issue of VAT input tax deductible pilots for agricultural products stated that from February 1, 2014, the purchase of agricultural products was used as raw materials to produce and sell lint, The general taxpayers of cotton yarns, refined tea, and melon seeds are included in the pilot deduction for the VAT input tax of agricultural products. Regardless of whether or not the purchased agricultural products are used to produce the above products, the VAT input tax amounts are in accordance with the “State Administration of Taxation of the Ministry of Finance in some industries. "Notice of Trial Measures for the Deduction of Input Taxes on Agricultural Products VAT Input Taxes," which means that 13% of the input tax will be broken.

The introduction of several policies affecting a limited number of policies has a positive significance for the development of textile enterprises to a certain extent. It also allows cotton spinning companies to seem to see the hope of solving the bottleneck of development. However, most cotton textile enterprises believe that the introduction of these policies is currently in progress. The impact on the business is still limited.

"Anyway, the introduction of the policy is of positive significance to the future development of the company. This is good for the company." Luo Dongyi, general manager of Lingfeng Textile Co., Ltd. Ling Ling believes that although the recent policy has been adjusted, but for companies to come Said that the intensity of the policy is still very small.

“The cotton policy is only piloted in Xinjiang and has not been implemented nationwide. No specific regulations have been made. The cotton price is a little lower than the original, but there is still a big gap compared to international cotton prices. Cotton Spinning Business brings much benefit." Luo Dongyi said.

"The current market is not very good, sales are declining, product prices are also falling, the market is on the wait and see." Jiangxi Jinxing Textile Co., Ltd. is mainly based on cotton textile products, the company's office director Han Jiangzhong said that these policies for For enterprises, there is not much impact. "Not playing a fundamental role."

It is worth mentioning that at the fifth expanded meeting of the fourth session of the China Cotton Textile Industry Association held recently, the cotton spinning enterprises have imported cotton for the State Reserve and cotton in the Xinjiang The bundling of sales regulations is strongly opposed to criticism. They believe that this move creates new unfair competition.

Regarding the relevant circumstances of the “high-learning and low-deduction” reform pilot, Zhan Lingzhi, chairman of Anhui Huamao Group Co., Ltd., pointed out that in 2014, Anhui Province included cotton yarn in the scope of the deductible pilot of VAT input tax for agricultural products, and calculated according to relevant regulations. Compared with previous years, we can pay a certain amount of tax, which is beneficial to enterprises, but it is unreasonable to carry out a standard deduction according to different product varieties.

She suggested that in accordance with tax deductions for VAT invoices, establish procedures and market order that are consistent with the financial system and international practices, which is conducive to enterprises participating in international competition.

He Xiaosi, information manager of China Cotton Textile Information Network, believes that the introduction of relevant policies is a good news for the textile industry. However, because some policies did not publish specific measures, they did not have much impact on the current production and operation of the company. .

Prepare for response Although the relevant policies are gradually implemented, the current situation in the industry has not been improved due to the implementation of the policy. For cotton spinning companies, the future situation is still not optimistic, and relevant measures will still be taken to deal with them.

"This year's situation will not be very good. If the first half is not good, it will certainly not be much better in the second half of the year." Liu Disheng, deputy general manager of Wuxi Simian Textile Co., Ltd., said that the situation is still good or bad to wait until all policies After bright.

Luo Dongyi stated that in the current situation where all policies are still unclear, companies can only sustain themselves by improving product quality and adjusting product mix.

“Adjustment of the cotton policy is a long-term, long-term war.” He Xiaosi pointed out that before the policy has not been completely settled, cotton spinning companies still need to take relevant measures to deal with.

"As for the cotton policy issue, the cotton issue has long plagued the cotton spinning industry and even the entire textile industry. China Textile Union is pushing forward to resolve relevant issues in a step-by-step manner. The state has adjusted its purchasing and storage policy to a target price subsidy policy, making the textile industry see the dawn and the policy is It is conducive to the direction of the development of the textile industry,” said Gao Yong, vice president and secretary-general of the China Textile Industry Federation.

Gao Yong also reminded that the situation of the textile industry in 2014 has been changing steadily. It is expected that there will be some changes in the raw material market after the listing of new cotton in September. The current cotton policy is a protection for farmers with low agricultural productivity, and the possibility of complete liberalization Not so large, textile companies must be prepared to respond to changes.

"Although the relevant policies are being adjusted, we will also be affected by at least three years. Enterprises must be prepared." Gao Yong has been stressing the company.

Nowadays, it is the season when the spring season is very strong. The related policies concerning cotton spinning are also loosening. However, for the cotton spinning industry, the arrival of spring is still far away.