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    Three Major Problems To Be Solved In Cotton Direct Subsidy In China

    2013/5/15 21:20:00 12

    Cotton Direct SubsidyCotton PolicyCotton IndustryCotton Subsidy

    < p > < strong > puzzle 1 how to fill up < /strong > < /p >


    < p > if the implementation of < a href= "http://www.91se91.com/news/index_c.asp" > cotton farmers direct subsidy > /a >, what form of direct subsidy should be adopted? What is the right subsidy to cotton farmers?


    < p > "now the state only grants us 15 yuan per mu of cotton seed subsidy, which is negligible for us."

    Sun Guozhang, a cotton grower in Henan, counted out an amount of cotton for the reporter. The total cost of labor, fertilizer and seeds needed for the project was nearly 2000 yuan.

    In the case of no natural disasters, according to the current cotton price, the yield per mu of cotton is only about 200~300 yuan.

    < /p >


    < p > "this is still a good year. If we don't get a good harvest, we only have to lose money."

    Sun Guozhang said that if the country really realized cotton subsidies, at least 200 yuan per mu, in order to protect the cotton farmers' income to a certain extent.

    < /p >


    < p > Li 61 also said that every mu can subsidize 150~200 yuan in order to protect the income of cotton farmers.

    "We hope to be able to raise the enthusiasm of cotton growers in accordance with the grain subsidy so that if there is no benefit every year, no farmers will be willing to grow cotton."

    < /p >


    < p > it is understood that at present, China has subsidized the grain planting link to about 120 yuan per mu, and implemented the lowest purchase price policy in the sales link, giving mechanization and other supporting services in production.

    As of 2013, the state has increased the minimum grain purchase price for six consecutive years, with a cumulative increase of more than 70%, and the degree of grain mechanization in the main producing provinces exceeds 80%.

    Growing grain is a choice to save money and labor without any worries.

    < /p >


    < p > in fact, the cotton farmers direct subsidy experience in the United States is worth mentioning.

    For a long time, the US government has subsidized cotton farmers in various ways, including production subsidies, sales subsidies and export subsidies which have been used but have been cancelled.

    According to the current US agriculture act, from 2008 to 2012, the annual subsidy amount of US cotton amounted to more than 10 billion US dollars, of which direct subsidies amounted to US $611 million, and countercyclical subsidies and market loans averaged 465 million US dollars and US $11 million 600 thousand respectively.

    < /p >


    < p > us direct subsidy cotton growers and other related policies not only guarantee the < a href= "http://www.91se91.com/news/" > cotton farmers' interest /a >, but also benefit from cotton spinning enterprises, taking into account the interests of agriculture and industry and safeguarding the national interests of the United States.

    < /p >


    < p > "we hope to implement it according to the US cotton grower policy, and hope that it will be more powerful than the US, because our grain subsidy is greater than that of the United States."

    Gao Yong said in an interview with our correspondent.

    < /p >


    < p > at the same time, some people in the industry suggested that in the subsidy policy of cotton farmers, we could take the innovative approach of separating cotton farmers from the market price. Even if the cotton farmers enjoy subsidies, they can make < a target= "_blank" href= "http://www.91se91.com/" > textile < /a > enterprises use the cheap cotton that is comparable to the foreign cotton price level.

    < /p >


    < p > the specific way is to publish and assign the quota of imported cotton to the scale textile enterprises in advance. In accordance with the proportion of 3:1 or 2:1, the quota of imported cotton should be used in the 1~2 year to speed up the process of stocking cotton to be stockpiled and reduce the quantity of national cotton reserve stock to a reasonable range.

    < /p >


    < p class= "MsoNormal" style= "margin: 0cm 0cm 0pt" > span lang= "EN-US" lang= "Microsoft";


    < p > < strong > Puzzle 2 what problem can be solved? < /strong > < /p >


    < p > "cotton farmers direct subsidy can not only guarantee the enthusiasm of cotton growers, but also provide a stable source of raw materials for cotton enterprises."

    Gao Yong said, "we should start with cotton farmers' direct subsidy and make a big change in the cotton system."

    < /p >


    < p > but in fact, the realization of cotton farmers' direct subsidy is far more than a href= "http://www.91se91.com/news/" > cotton industry < /a > chain.

    < /p >


    P, an industry expert in the industry, said in an interview with reporters that cotton farmers' direct subsidy has positive effects on at least four aspects.

    < /p >


    < p > first, we can reduce the intermediate links and safeguard the interests of cotton farmers to the greatest extent.

    If the middle link of the cotton industry chain is reduced, the income of cotton farmers can be increased, and the enthusiasm of cotton farmers will also rise.

    < /p >


    < p > secondly, it can effectively guarantee the quality of cotton.

    Cotton temporary purchase and storage policy can effectively protect cotton prices, but it can not guarantee the quality of cotton.

    < /p >


    < p > once again, it can lighten the financial burden of the state.

    At present, the state has bought cotton at a high price and sold cotton at below the reserve price, which has caused great financial burden to the state. If cotton farmers are directly compensated, the financial burden of the country can be reduced.

    < /p >


    < p > finally, it can consolidate the market of < a href= "http://www.91se91.com" > textile enterprise < /a >.

    At present, because of the cotton price problem, a large number of India and Pakistan enterprises have seized the market of China's textile enterprises. If the cotton farmers are directly compensated, they may make the textile enterprises regain the lost market.

    < /p >


    What is the difficulty of < p > < strong > 3? < /strong > < /p >


    < p > although cotton farmers have already formed a preliminary consensus on the cotton industry chain, experts and scholars have expressed different views on cotton farmers' subsidies.

    < /p >


    < p > industry experts said that the cotton farmers' direct subsidy should take into account three problems: first, the government even gave the "a href=" http://www.91se91.com "Cotton Subsidy" /a ", but it could not ensure the cotton farmers' income and stable cotton planting area.

    Two, the cultivation and sale of cotton is different from that of grain. Grain has been directly managed and regulated by the relevant departments of the state. However, the cotton market is completely liberalized, and no specific competent department is responsible for it.

    Three, even if cotton farmers are directly compensated, can domestic cotton prices be lowered? < /p >


    < p > the starting point of cotton farmers' direct subsidy is good and progress.

    In the past, subsidies actually did not benefit the cotton farmers, nor did they play the role of subsidies.

    Gu Qingliang, a professor at Donghua University, said in an interview with our correspondent.

    < /p >


    < p > in Gu Qingliang's view, cotton farmers direct subsidy operation is very difficult.

    "How to determine the standard of subsidy? Under what circumstances should we subsidize? The decentralization and individualization of Chinese cotton farmers will bring many difficulties to cotton farmers."

    < /p >


    < p > Gu Qingliang analysis shows that if direct subsidy can be implemented, it will increase the price competitiveness to a certain extent, and it may increase farmers' income, but it can not solve the problem of cotton production efficiency. It can not solve the problem of supply and demand balance. On the contrary, it may even increase supply fluctuations, which may cause distortions in cotton grain yield. These are issues that need careful consideration.

    < /p >


    < p > "cotton farmers direct subsidy need to have a good direct subsidy mechanism design, and must be considered comprehensively."

    Gu Qingliang said.

    < /p >


    < p > the relevant departments of the state also attach great importance to the appeal of cotton farmers' direct subsidy.

    < /p >


    < p > "whether we can make direct subsidy to farmers, we are doing everything possible to take this step forward, but this is not a slogan."

    Zhang Xianbin, director of the economic and trade division of the national development and Reform Commission, said at an industry conference that in the short term, it is still difficult to follow the US practice, but that does not mean that this road is blocked.

    < /p >


    < p > "if our country's a href=" http://www.91se91.com "> cotton planting < /a > forming a certain scale and the financial capacity of the state can be allowed, we will gradually increase this strength.

    Zhang Xianbin said.

    < /p >

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