Cotton industry is now disorderly competition

This year, cotton processing companies prefer workers to leave, empty warehouses and shut down machines, and are unwilling to find ways to obtain cotton for processing and production. This situation seems reasonable to those in the industry.
For cotton processing companies, in addition to taking part in social responsibility, the ultimate and ultimate goal is to make money.
However, according to relevant professionals, according to the current market conditions for cotton, not only cotton farmers lose money, but also cotton processing companies are producing more losses.
Another important reason is that companies have introduced specific cotton subsidies for local governments. Since the detailed rules have not been issued, it means that the subsidized funds have not been implemented, and the policy is still in the state of "water in the moon and mirror in the mirror."
In fact, at present, the state does not specify the 2,000 yuan in the subsidy scheme. It directly subsidizes the cotton farmers according to the area of ​​planted cotton, or indirectly subsidizes them to the cotton farmers according to the output, or subsidizes them by other means.
Therefore, these uncertainties also make cotton processing companies not dare to buy large amounts of cotton. In fact, cotton processing companies are equally worried that if they open up the acquisition of cotton, they will suffer a policy deficit in the future. Therefore, under the combined effect of production loss and unclear subsidies, cotton processing companies adopt such a cautious attitude toward cotton harvesting, which is also a reasonable matter.
However, in comparison with issues such as lower cotton prices and reluctance to sell cotton, the disorderly competition in the cotton processing industry brought about by the cancellation of the temporary national policy for cotton collection and storage in 2014 was even more so for cotton processing companies, especially large-scale ones. (Refers to Type 400) A headache for cotton processing companies.
Practically speaking, at present, the “big cake” of China’s cotton processing is mainly shared by “400 cotton processing companies”, “200 cotton processing companies” and the so-called “two small and one earth enterprise” of family workshops.
Among them, the “Two Small Primary Soil” workshops, particularly the use of small stick machines, small saw blades and soil packers that have long been forbidden by major countries, were the most “active” this year. In the eyes of this kind of workshop-style small cotton processing enterprises, not only do they have no national standards and technical specifications, but they also often do some subsidy activities.
It goes without saying that the 400-type cotton enterprises are technologically advanced and technologically standardized, the quality of processed cotton is guaranteed, and the product quality is internationally competitive. At the same time, its production technology has been strongly promoted by government departments. Therefore, in the past few years, the country's designated cotton storage and storage enterprises must be 400 cotton enterprises.
At that time, most cotton farmers consciously voluntarily sold cotton to 400 cotton enterprises. The market for the remaining 200 cotton enterprises and the "two small earth soil" plus cotton workshops was squeezing out. Except for a few old and poor areas, the shadows of these two types of enterprises could not be seen in most parts of our country.
However, this year’s temporary cotton purchasing and storage policy was abolished and cotton prices were lower. The 200-type cotton processing company and the “two small and one soil” cotton plus workshop started from “returning from the rivers and lakes”.
Among them, “two small and one soil” rely on a simple production process, but also can escape tax and fees through methods such as “one shot for a place”, which greatly reduces the cost of cotton processing. At present, this type of cotton processing enterprise is opening up enough horsepower to acquire and process cotton. A large number of cotton products with unreliable quality flow through them to the market.
The issue that deserves high priority is that the 200-type cotton processing enterprises and the “two small and one soil” cotton-plus workshops have obtained a huge space for development due to changes in national policies. In fact, they are currently developing rapidly.
However, in the long run, such cotton processing companies with low production prices and poor quality cotton products as the “opportunities” will inevitably squeeze the living space of the 400 cotton processing companies. Under the strong support of large-scale cotton companies and related national departments, it is not easy to develop, and the 400 cotton enterprises with international competitiveness are likely to suddenly “dead” overnight.
Once such a situation arises, not only will our painstaking efforts over many years of cotton quality strategy fall short of success, but it will be a “reversing drive” and “taking a step back” for the development of our entire cotton industry.
Therefore, the relevant law enforcement agencies should step up enforcement efforts in the future. For the small stick machines, small saw-tooth machines, and soil packers that the country has banned for a long time, one must be found.
The illegally engaged in the processing and acquisition of cotton by enterprises that have not obtained a cotton purchase processing license must also be strictly prohibited and heavier. All parties should start from the overall situation of quality cotton and science and technology, and provide a good development space for the 400 cotton processing enterprises.

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