China Cotton Association Will Grant Quota Subsidies To Major Cotton Producing Areas In The Mainland

Here in the world Clothing shoes and hats The editor of the website introduced an exclusive interview with the China Cotton Association: the main cotton producing areas in the mainland will be given quota subsidies.

The 2014 cotton year is the first year for the implementation of the cotton target price reform policy. Recently, with the release of the detailed rules, people in the industry have called for advice on their concerns. In view of this, the reporter interviewed the relevant leaders of the China Cotton Association who participated in the research on the target price policy.

China Cotton Information Network: According to the principle of target price policy, the price difference between the market average price and the target price is subsidized to farmers in a certain way. How is the market average price used to calculate the price difference collected?

China Cotton Association:

The purchase price of seed cotton of cotton gathering and ginning plant is converted into the lint price as the market price. The relevant departments convert the lint price according to the formula according to the monitored seed cotton price, cottonseed price, lint percentage and other indicators: seed cotton converted into lint price=[seed cotton price - cottonseed price × (1-lint percentage)]/lint percentage+processing cost. The price collection period is from September to November. According to historical experience, the sales volume of Xinjiang cotton during the price collection period can reach about 85%, which basically represents the actual sales price. The market price is determined according to the monitored average price level of the whole Xinjiang Autonomous Region, rather than the actual selling price of a single cotton farmer.

The monitoring of cotton market price is led by the Price Center of the National Development and Reform Commission, and jointly participated by the Agricultural Product Market Monitoring and Early Warning Center of the Ministry of Agriculture, the China Cotton Association and the Central Reserve Cotton Information Center. The monitoring points cover most cotton producing counties in Xinjiang and cotton planting division of Xinjiang Construction Corps. Each monitoring unit collects the actual transactions every day, including the purchase price of seed cotton, sales price of seed cotton, lint percentage and other indicators, which are summarized after being reviewed and approved. Finally, the average cotton market price in Xinjiang is calculated according to the daily price, local output, grade structure, purchase progress and other indicators.

Reporter: Is there any limit on the total amount of subsidies? What is the general budget and affordability of finance?

The total amount of subsidies is determined according to the price difference between the target price and the market price and the output measurement surveyed by the National Bureau of Statistics. Under the condition of constant output, the lower the market price, the more the total amount of subsidies.

Reporter: When will the subsidy be paid Cotton farmer Hand?

The target price subsidy is distributed in two steps: first, by the end of December of that year, the central finance will allocate the total amount of subsidy funds to Xinjiang Autonomous Region and the Production and Construction Corps; Second, the autonomous region and the Corps distributed subsidies to cotton farmers twice, that is, before the end of January of the next year, the financial department paid the area subsidies with the planting certificate; By the end of February of the next year, the production subsidies shall be cashed with the purchase bills and planting certificates of seed cotton. In accordance with the Interim Measures for the Use and Management of Subsidy Funds for Xinjiang Cotton Target Price Reform Pilot, the financial department cashed the area subsidy funds and output subsidy funds to cotton farmers in the form of "all-in-one card" or other forms.

Reporter: At present, it is rumored that the subsidy of 2000 yuan/ton for cotton production in the mainland has been confirmed?

The state will give quota subsidies to cotton farmers in the main cotton producing areas in the Yellow River and Yangtze River basins. Subsidies are limited to farmers who actually grow cotton, so as to ensure that farmers who grow cotton receive substantial benefits.

Reporter: In the news released earlier, it was said that "when cotton prices fall excessively and it is difficult to sell cotton, emergency measures may be introduced". How to define "excessive decline"? What are the "emergency measures"? Will the state have a back office policy?

Cotton price return in the new year market It is a normal phenomenon, and the government will try to reduce its intervention in the market. However, if there is an extreme situation in the market, the price of domestic cotton has fallen excessively, and it is difficult to sell cotton in a large area, the state will take necessary measures to encourage enterprises to enter the market for purchase, and if necessary, it can also be purchased by China Cotton Storage Corporation on the market to stabilize the market. The state has the ability and means to maintain normal market operation and ensure the success of the pilot reform of target prices.