Analysis Of Cotton Comprehensive Subsidy Policy System

Whether the implementation can solve a series of problems faced by the development of cotton industry is still open to question.

Xinjiang is a high quality cotton production base in China. Its output accounts for more than half of the whole country. It plays an important role in maintaining cotton safety and is of great significance for maintaining stability in the border area.

China's existing import quota system, temporary storage and seed subsidy are not effective in protecting cotton farmers' interests and stabilizing cotton production.

First, build a comprehensive Cotton Subsidy Policy System background.

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The production support policy has attracted the attention of various parties for various reasons. The main reason is that the temporary purchase and storage policy has failed to make the market mechanism of cotton price failure, resulting in the excessive domestic and foreign cotton price difference and the rising domestic cotton inventories.

The implementation of the target price policy mainly solves the problem of the market deciding cotton prices, and also reduces the pressure on the acquisition of cotton. However, in order to maintain the stability and development of the cotton industry, we must consider the comprehensive subsidy policy in all aspects.

As far as the construction of comprehensive subsidy policy is concerned, the development trend of cotton industry is its important foundation and background.

The main points are as follows:

1, the distribution of cotton planting in China has been constantly adjusted to further concentrate on Xinjiang.

For a long time, cotton cultivation in China is mainly distributed in the three major cotton producing areas of the the Yellow River River Basin, the Yangtze River Basin and the northwest inland area. Among them, the cotton area in the Yangtze River Basin accounts for 25% of the whole country, and the total output accounts for 22% of the whole country. The cotton area of the Yellow River River Basin accounts for 40% of the whole country, and the total output accounts for 37% of the whole country.

However, with the rise of labor force and other factor prices in China, the pattern of cotton planting has undergone major changes. The proportion of cotton growing areas in Xinjiang has been increasing and the cotton area in the mainland has been decreasing.

Zhu Huiyi (2013) pointed out that the cotton production pattern in China has been gradually concentrated in Xinjiang since 1980 years ago. This change not only promoted the expansion of cultivated land in Xinjiang, but also strengthened the regional function of Xinjiang in agricultural production in China.

He thinks that the regional difference of labor productivity is the main reason for China's cotton production to concentrate in Xinjiang under the market economy.

From an economic point of view, in recent years, with the rising price of rural labor in China, the opportunity cost of cotton production in China's the Yellow River River Basin and the Yangtze River valley cotton region has gradually increased, while the advantage of planting cotton in Xinjiang has been gradually highlighted. Under the condition of a slight increase in total planting area, the yield per unit area has also increased steadily, and the proportion of total output in the whole country has risen sharply.

According to the number of cotton inspection and storage in Xinjiang, the proportion of cotton output in Xinjiang accounts for more than 60%.

2, China's cotton production costs continue to increase, the international competitive advantage weakened.

In recent years, with the rising of factor prices and RMB appreciation, the low cost advantages of cotton in China have been weakening. The prices of important agricultural means of production, such as seeds, pesticides, water charges and fertilizers, have risen sharply, especially the rise of labor costs.

According to the compilation of 2014 national agricultural products cost and income data compiled by the national development and Reform Commission in 2008, the average cotton yield per mu in China was 83.2 kg / mu, and the total cost was 1080 yuan / mu, of which the material and service cost was 403 yuan / mu, and the labor cost was 527 yuan / mu. In 2013, the average cotton yield of cotton in China was 88.2 kg / mu, which was 6% higher than that in 2008. The total cost was 2177 yuan / mu, which was 102% more than that in 2008.

Correspondingly, the output of cotton production in the United States has declined slightly, and the cost of production has increased little.

In 2008, the average cotton yield per mu in the United States was 47.3 kg / mu, and the total cost was 665 yuan / mu. In 2013, the average cotton yield per mu in the United States was 44.2 kg / mu, 6.5% lower than that in 2008, and the total cost was 717 yuan / mu, up 1.6% compared with 2008.

According to the per 50 kilograms of lint yield, the total cost of cotton production in China was 531 yuan in 2008. The total cost of cotton production in the United States was 704 yuan, which was higher than 32.6% in China. In 2013, the total cost of cotton production in China was 1036 yuan, and the total cost of cotton production in the United States was 811 yuan, which was higher than that in the United States.

Compared with the US cotton, the cost advantage of China's cotton production has been significantly lost, compared with other cotton production low cost countries, the gap is even greater.

In recent years, changes in cotton production in the world's major cotton producing countries have also reflected this trend, mainly reflected in the decline in cotton production in the United States and Australia, and the increase in cotton production in central and South Asia and South America, while China's cotton has maintained steady growth under the support of domestic temporary storage and target price policy.

In the past 10 years, after China's accession to the WTO, China's textile and clothing export restrictions have been reduced, and the textile industry has maintained a rapid development trend.

In 2011, textile enterprises above Designated Size realized gross industrial output value of 5 trillion and 478 billion 650 million yuan, an increase of 26.8% over the same period last year.

Since then, although the total textile industry has continued to grow, the growth rate has dropped significantly, and the growth of fixed assets investment and new projects has been slow. The profits of the industry have also continued to drop, mainly due to rising labor costs, rising prices of raw materials and appreciation of the renminbi.

The high cost era of textile industry has arrived, and the low cost competitive advantage of China's textile and garment industry is no longer supported by cheap labor force.

From the point of view of the output of products, the output growth of major categories of products has generally declined, and the output of key products such as chemical fiber, yarn, cloth and clothing has continued to decline.

In 2013, the output of chemical fiber, yarn, cloth and clothing of textile enterprises above designated size was 41 million 220 thousand tons, 32 million tons, 68 billion 300 million meters and 27 billion 100 million pieces respectively, representing an increase of 7.9%, 7.2%, 4.6% and 1.3% respectively, representing a decrease of 3.3, 2.6, 7 and 7 percentage points respectively over the same period last year.

Textile enterprises are facing the need of upgrading and pformation. The trend of low-end and low value-added products is gradually increasing to Southeast Asia, Africa and other places. The domestic textile enterprises first scale and high-end development, and the requirements for the quality of cotton continue to improve.

Two. Basic requirements for comprehensive Cotton Subsidy Policy.

1, maintain the appropriate scale of domestic cotton production and optimize the layout of production.

Because of the rising cost of cotton production in China, the competitive advantage of domestic cotton production has been continuously weakened, and the cost of cotton production in central and South Asia and Africa is relatively low, and the development potential is enormous. From the perspective of making full use of the two market resources at home and abroad, we should reduce the scale of domestic cotton flower cultivation.

However, the textile and garment industry will remain one of the basic industries of our national economy and employment in a long period of time. Cotton is the basic raw material of textile enterprises and one of the basic materials of the national economy. The maintenance of appropriate self-sufficiency rate is a basic requirement for reducing risks, maintaining stable development of industrial chains and ensuring national economic security.

Therefore, a modest reduction in the scale of domestic cotton production, while maintaining control and discourse power on the international cotton market should be one of the development goals of cotton production in China.

On this basis, we should continue to adjust the layout of domestic cotton production and give full play to comparative advantages.

The basic pattern of Xinjiang's high quality cotton production base has been initially formed and should be further consolidated.

2, protect the interests of cotton farmers

Agricultural production itself is cyclical. In the development of agricultural modernization, the cost of agricultural planting structure adjustment is also increasing.

Cotton production is higher than that of field crops such as grain and oil, which requires higher farmers' quality and planting experience.

Protecting cotton farmers' enthusiasm is the foundation for maintaining cotton production stability.

At the same time, maintaining the livelihood of farmers is a basic issue of the national economy and the people's livelihood. It is particularly important for Xinjiang's multi-ethnic areas.

Therefore, protecting cotton farmers' interests has become the first goal of cotton comprehensive subsidy policy.

3, promote the improvement of cotton quality

The temporary purchase and storage policy cut the link between cotton production and textile cotton, resulting in a one-sided pursuit of output in cotton production in China, leading to the continuous decline of domestic cotton quality.

With the development of high-end textile enterprises in China, the emphasis on cotton quality will exceed the concern of cotton prices.

Therefore, paying attention to the quality of cotton production is not only a requirement to support the pformation and upgrading of the textile industry, but also a need to mold the brand and increase the competitiveness of domestic cotton.

The target price policy replies to the market pricing mechanism, to a certain extent, to curb the further downward trend of flower quality.

However, the complexity of cotton quality improvement determines that it is difficult to achieve the desired goal consciously through market regulation. It is an important way and means to improve the quality of cotton through a certain industrial support policy.

4, promote the modernization of cotton production.

Cotton is one of the longest agricultural products in the industrial chain. The complexity of its production and the combination with upstream and downstream industrial chains all put forward higher requirements for cotton production, and also give higher requirements for the modernization of cotton production.

One of the more prominent features is the following aspects: first, improving the scale production of cotton, which is conducive to improving cotton quality and yield and controlling costs, and also conducive to the adoption and promotion of new technologies and standardization. It will also reduce the implementation cost of cotton support policies; two, strengthen the research and development, popularization and management of cotton varieties, and cotton varieties play a decisive role in cotton quality and yield, or in cultivation management and mechanization; three, increase the level of mechanization and informatization of cotton, and with the increase of factor costs, especially the increase of labor costs, mechanization and informatization have become an important means to control cotton production costs, especially the mechanized harvesting and processing of cotton.

Four is to support the ecological problems of cotton production. In Xinjiang cotton production basically achieved one hundred percent of the plastic film cultivation, there are more than 10 consecutive years, or even more than twenty years of continuous planting, and so on, resulting in ecological pollution and over utilization and other issues, we should pay attention to.

Three, the basic assumption of cotton comprehensive subsidy policy in China

At present, China's cotton support policy mainly includes policies such as target price policy, fine varieties subsidy, agricultural machinery subsidies, sliding tax and import quotas.

But these policies can not adapt to the new situation of domestic cotton industry development, nor can meet the new requirements of industrial development. They should be perfected and supplemented.

1, target price policy

The target price policy in 2014 has achieved good results in the central government and the local government of Xinjiang. It has accumulated valuable experience for further improvement. I believe that we should further improve the following aspects:

First, the determination of the target price should not only consider the production cost of cotton farmers, but also consider the price of cotton in the international market.

That is: target price = domestic basic production cost (including reasonable profit) * trade-off coefficient + international market average price * (1- trade-off coefficient).

When other domestic production support policies have not yet been established, the trade-off coefficient can be higher. With the establishment of other supporting policies in China, gradually reducing the trade-off coefficient will not only help control and protect domestic industries, but also help to gradually integrate with international prices.

Two, the subsidy policy of target price should simplify the subsidy plan.

As far as Xinjiang is concerned, the current implementation of target price subsidy is based on output or production and area, which is divided into subsidies. The implementation process involves many departments and links, resulting in high cost of policy implementation. At the same time, it still has a one-sided emphasis on output and neglects quality problems.

Subsidized by area simplifies the departments and links involved in the subsidy and reduces the cost.

However, the determination of the area can not be determined according to the number of species to be supplementated (to prevent wide range of income and fraud). In terms of area determination, on the one hand, the establishment of information systems and databases, the implementation of archives and blacklist system, on the other hand, consideration can be given to determining the subsidy area based on historical cotton and policy guidance (tightening or expansion).

For the production of cotton Corps in Xinjiang corps, due to its particularity, it should continue to implement the policy of single plan. It is that the cost of carrying out the subsidy policy based on area and production is not changed so that it can be determined on the basis of the needs of its Corps management.

The three is to establish a fixed pricing method and to determine the next round of target prices early and enhance predictability.

2, production subsidy policy

(1) supporting policies for R & D, promotion and management of high quality cotton varieties.

The existing subsidy policy has evolved into GSP, and the support amount is small, so it is difficult to play a corresponding role.

Should be adjusted: first, increase the support of new cotton varieties R & D institutions, focus on supporting more high-quality and conducive to the research and development of machine harvested varieties; two, increase the subsidies for high quality varieties; three, strict seed management system.

(2) give the subsidy policy of large-scale operation.

We should increase support for cotton cooperatives and land consolidation operations, and support them according to farms, cooperatives, contiguous lines and business scale.

(3) subsidy policy for agricultural mechanization.

The existing mechanized subsidies are subsidized by the purchase of agricultural machinery, with little support. For the mechanization of cotton, in addition to the general subsidies for agricultural machinery, the support for mechanization of cotton picking and processing of machine picked cotton will be increased.

(4) subsidy policy for plastic film.

Considering the ecological requirements, the thicker recyclable plastic film can be forced to use. On the one hand, it can solve the ecological problems, and on the one hand, it will also help to reduce the cost of cotton farmers.

(5) agricultural insurance policy.

Imitation of the insurance policies of developed countries on agricultural production to regulate the impact of market prices on Farmers' lives.

3. Other policies

(1) income subsidy policy.

For some specific regions and groups, the income subsidy policy can be implemented.

(2) other policies are perfect.

Under the rules of international trade, we will continue to promote the healthy development of domestic cotton industry through sliding duties, quotas and other policies that can be adopted.