Reform Front: Four Related Issues Of Cotton Target Price Reform In Xinjiang

One question: why?

Let the market play a leading role Effect So that producers can get subsidies in a clear way.

In recent years, cotton prices have been operating at a high level supported by the state's temporary purchasing and storage policy. The price difference between domestic and foreign cotton is getting bigger and bigger, and the pressure of national purchasing and storage is increasing rapidly. The distortion of the price relationship between the upstream and downstream industries and the weakening of market vitality are not conducive to the sustained and healthy development of the whole industrial chain. In April this year, the national development and Reform Commission, the Ministry of Finance and the Ministry of agriculture jointly issued the target price of cotton in 2014, and abolished the cotton purchase and storage policy which had been implemented in Xinjiang for 3 years, and implemented the cotton target price reform. In September, the reform pilot work was officially begun.

"We must give full play to the basic role of market mechanism in the price formation of agricultural products, so as to better mobilize the enthusiasm of farmers and all kinds of market players and further promote the healthy and sustainable development of the whole industrial chain." Zhang Xiaoping, Deputy Secretary General of the people's Government of the Xinjiang Uygur Autonomous Region, said. When the market price is lower than the target price, the state grants subsidies to producers in the pilot area according to the difference between the target price and the market price, and does not grant subsidies when the market price is higher than the target price.

To carry out the pilot project of cotton target price reform, the goal is to give full play to the decisive role of the market in the allocation of resources under the premise of protecting the interests of farmers. First, the government does not interfere with market prices, and the acquisition of enterprises at market prices will help restore the vitality of domestic industries and improve the market competitiveness of domestic agricultural products. Two, the government subsidy will be changed from the "covert subsidy" contained in the price to the "direct subsidy" of direct payment, so that producers can be clearly subsidized, reduce the intermediate links and improve the efficiency of subsidies. Three, we should give full play to the role of market regulation in production structure, and help producers with high efficiency and competitiveness to stand out, improve the organization and scale of agricultural production, encourage agricultural technological progress, and control the excessive rise in production costs.

　 Two question: Yes? Patch?

Subsidies will be issued in combination with actual cotton planting area and seed cotton sale volume.

According to the "Xinjiang cotton target price reform pilot project implementation plan" promulgated in September, the issuance of cotton target price subsidies will be carried out in accordance with the verified cotton planting area and seed cotton sale volume. Liu Weidong, deputy director of the agricultural products and water resources price division of the the Xinjiang Uygur Autonomous Region development and Reform Commission, said that this subsidy method will effectively prevent the cotton farmers from paying attention to the planting area and neglecting the quality of cotton. At the same time, those farmers who rely on Interplanting cotton to obtain subsidy funds are also bound.

To receive subsidies, cotton growers must hand over seed cotton to the cotton processing enterprises qualified by the autonomous region to get the common invoices or purchase invoices issued by the enterprises, and the tickets should be completed in full. In order to prevent the acquisition of subsidized funds, the pilot scheme has formulated corresponding punishment methods for the coverage of subsidies, false reports, omissions and reports.

In addition, in order to prevent enterprises and cotton farmers from taking the subsidy together, the autonomous region requires all levels of agricultural departments to take counties and cities as the region, and the linen percentage of the cotton varieties popularized locally (the proportion of lint to seed cotton) is used as an important index to prevent "turning cotton". At the same time, the third party is in the public inspection of the lint, and the Xinjiang enterprises are prohibited from buying Xinjiang seed cotton.

　 Three question: is the result good?

Overall is conducive to the development of Xinjiang's cotton industry.

"The quality of cotton in Xinjiang has declined in recent years. This year, through warehousing and public inspection, we can effectively curb shoddy and improve quality and make Xinjiang cotton more competitive in the market." Liu Weidong said, "we can also take advantage of this reform opportunity to further find out the base of cotton production in Xinjiang, raise the level of intensive land use, strictly control excessive exploitation of water resources, curb illegal reclamation and protect the ecological environment." It is understood that in 2013, according to the estimated output of Xinjiang's cotton planting area, the National Bureau of statistics was 3 million 520 thousand tons, but in the end, the actual public inspection volume was 4 million 700 thousand tons, indicating that some land areas were not counted. The cotton planting area survey will provide a basis for adjusting the agricultural industrial structure: it is not suitable for planting cotton and low yield areas. It should be replanted to other crops or not to save agricultural water.

In addition, subsidizing cotton prices in the region can also help cotton farmers work harder on cotton quality. Li Xiaolin explained: if the quality of your cotton is not good, the selling price is lower than the average price, then the difference between your purchase price and the average price is your loss; if the quality is good, and the selling price is higher than the average price, the higher part will be more profitable.

It is understood that the total output of cotton in Xinjiang accounts for more than half of the cotton output in the whole country. About 35% of farmers' per capita net income comes from cotton planting income, and the main production area accounts for 50% to 70%. The pilot reform of cotton target price is of great significance to Xinjiang.

　 Four question: what else? problem ?

When is the most urgent subsidy for farmers, or they will not be able to buy loans.

For the pilot project of target price reform, the newly developed farm machinery and farmer cooperatives in Sha Ya county, Akesu area, which has considerable research in the cotton industry, supports the development of farm tanks. He believes that this is a process in which China's cotton prices are in line with international standards. Prices should be led by the market and not by the state. But from the perspective of most cotton farmers, when they get their allowance, they are most concerned about it. "Subsidy is a good thing, but it is not known when this money will come to us." Da Ke said.

Sha Ya county is a major cotton growing County in the country. Tian tank's own family planted 600 mu of cotton this year. "Subsidies are certain, sooner or later, they can get their hands, but the early hair is quite different." The field tank also calculates accounts: we planted cotton in large quantities, and most growers have to rely on loans. In the past, no matter how much money we sell, we are selling the cash now and getting the new loans, so that we can buy relatively cheap chemical fertilizers and other agricultural machinery products. Until the beginning of spring, the planting of the next year will not be affected. This year we can only get 6.2 yuan per kilogram, which is not enough to run the basic cost of operation. The loan is definitely not yet, so that we may enter the black list of banks. Before the subsidy is issued, the interest rates of the banks are opened again, and the money has been seized. The price of chemical fertilizer has risen, and the price of chemical fertilizer has risen. Tian tanks hope to have policy support, first issue new loans, let farmers buy agricultural materials, and so on, the subsidy will come down. The government can give the money back to the bank directly, and the rest will be sent to the farmers again, so that banks are actually without risks.

Liu Weidong said that the autonomous region is now preparing to allocate 3 billion 500 million yuan of funds allocated by the state to the basic farmers in accordance with the planting area, which is used to purchase agricultural materials. At present, the large farmers who contract land can only prepare their own working capital. Xu Liang, deputy county magistrate of Kuche County, suggests that the repayment period of bank loans can be extended according to the time of subsidy payment.