A Study On State Cotton Reserve Macro Control

Cotton is a kind of material that is significant to the state and its people,andserves as a kind of significant reserve commodity, which is an importantmeasure for the government to regulate and control cotton market.It is proved by the study that in economic planning system times, cottonreserve by Sales Agency was the internal cause to extending sales andpurchasing, as well as the price fluctuation;while in the transformationperiod to marketing, the action of selling cotton reserve by the governmentmeans transferring economic welfare from agriculture to weaving industry.It is argued that state cotton reserve's main problem in macro controllies in: inefficiency, bad return, valuing selling instead of purchasing, badtiming and injuring the self but benefiting others. The reasons behind are asfollows: the policy goal of controlling market by state cotton reserve isdispositional, damaging the stable basis of cotton market;the game betweenthe government and enterprises weakens the controlling effect of thereserve.The limitation of the state cotton reserve means that it cannot solvethe fluctuating problem of the market. The decision-making mechanismdetermines that farmers' reasonable benefit cannot be protected. Andbecause this reserve operation does not match with a marketing system, itlessens the control effect;the lack of market information causes mistakes bygovernment, enterprises and farmers in decision-making;the incomplete ofChinese Cotton market System intensifies the risk of state cotton reserve.It is suggested: setting a rational market-controlling goal;perfectingrelated operating system;protecting and supporting farmers' benefits;building a sound and opening information system;promoting cottonmarketing construction and amplifying related policies.