Cotton prices fall, farmers want to abandon cotton from grain

On the 26th of this month, Xinhuanet reported that there was an article titled "Why no harvested cotton is picked by people? The price of cotton fell by cotton farmers is no longer safe for food." It is reported that due to factors such as rising labor costs and falling cotton prices, Zhanhua County, Shandong Province is currently At least 100,000 mu of cotton are still left unattended in the fields.

We turn our attention to Xinjiang, a major cotton producing region. The calculation of the agricultural economics department of the Shaya County in Xinjiang shows that the cost of planting one acre of cotton this year has exceeded RMB 1,000. This does not include the labor cost of the farmers themselves, the food and accommodation costs of the employees, and the cost of picking cotton. In addition, the rapid rise in the price of agricultural resources has also reduced the income of many farmers.

The decline in the price of cotton and the increase in costs have affected the enthusiasm of many cotton farmers. In Sunjia Village, Fuguo Town, Zhanhua County, Shandong Province, 46-year-old Zhao Huamei planted 60 acres of cotton fields. Last year, the cotton price was 7.5 yuan/kg, which made her taste the sweetness and earned more than 60,000 yuan. But this year, Zhao Huamei is not pleased because after deducting the cost, basically no money is earned. In another province of Shandong Province, a thousand miles away, many farmers are disappointed with the “disappointment” of cotton prices. Jin Minghai, a cotton farmer in Jinhaozhuang Township, Linqing City, Shandong Province, said that he wanted to make more grain last year. However, the price of cotton is not bad. There are many types of cotton. I didn't expect this year to fall back to this level, and basically done it again.

According to reports from the International Finance News, cotton prices have continued to decline recently, and cotton farmers in the main cotton producing areas such as Xinjiang and Shandong are generally reluctant to sell their goods. Many farmers believe that this year's cotton can only protect capital. Due to the fact that the income from cotton cultivation has been consistently lower than that of seed grain in recent years, many cotton farmers in Shandong and other places have already converted the grain suitable for growing grain into grain. In the past few years when the price of cotton fell, many lands that could grow grain were planted with food. Only the saline-alkali lands and sandy lands had to continue to grow cotton. If cotton grows longer than grain, it would be more common to discard cotton.

Some experts said that due to factors such as oversupply and sluggish downstream demand, the price of cotton is unlikely to improve in the short term. If cotton prices continue to weaken and the interests of cotton farmers are damaged, it is likely to cause a decline in planting area, which will affect the decline in supply and increase prices again. This cyclical fluctuation is tantamount to a weak China's cotton spinning industry and the market needs to be vigilant. There is a cyclical rebound in prices that can be caused by farmers discarding species.