Maladjustment Of Cotton Subsidies: Xinjiang'S New Year Policy

In recent years, China's cotton market has fluctuated greatly, especially in Xinjiang, the phenomenon of "selling cotton is difficult".

In order to protect the interests of cotton growers, since 2011, the state has implemented the temporary cotton purchase and storage policy for 3 consecutive years, which has played an important role in stabilizing domestic cotton production and protecting the interests of farmers. At the same time, it has also caused domestic cotton prices to be much higher than the international market. The raw materials of the downstream textile industry remain high, and the international competitiveness has weakened rapidly, which once again affects cotton production and purchase.

In order to solve the predicament of "white industry", in 2014, the central government decided to carry out a pilot project of cotton target price reform in Xinjiang to stabilize the income of cotton farmers, while reducing the cost of raw materials for textile enterprises and promoting the coordinated development of the upstream and downstream industries.

At present, domestic cotton prices have dropped to a more reasonable level, basically in line with international market prices.

The people's Government of the Xinjiang Uygur Autonomous Region announced on the 14 day the implementation plan of the 2015 cotton target price reform pilot program, and adjusted the cotton direct subsidy mode. Most of Xinjiang will subsidize cotton farmers according to the amount of sale.

According to this plan, from September this year, 90% of the total amount of central subsidy will be supplied to cotton farmers by sale volume. The remaining 10% will be located in 4 Southern Xinjiang prefectures of Kashi, Hotan, Akesu and kiriz Kirgiz Autonomous Prefecture.

"Pay part of the cotton planting area subsidies.

In the pilot work of 2014, 60% of the central subsidy funds were implemented according to the cotton planting area, and 40% was supplementation according to the actual sales volume.

But "

"Subsidy" has disadvantages such as heavy workload and high administrative cost.

Zhang Chunlin, director of the development and Reform Commission, said that in order to facilitate farmers, this year Xinjiang will also implement an electronic "planting certificate" and no longer use the original paper version.

At present, the planting of most cotton farmers in Xinjiang has been put into the system, and farmers can sell them directly.

In September 2014, the state implemented cotton target price pilot work in Xinjiang for the first time, while canceling temporary storage and storage of cotton.

Since then, China's cotton prices began to be formed by market supply and demand, and the government no longer intervenes in market prices.

The so-called target price refers to the expected price set by the relevant departments of the state according to the cost of planting agricultural products on the premise that farmers are guaranteed certain benefits.

If the market price of agricultural products is lower than the target price at harvest time, it will be subsidized to farmers according to the difference; if the market price is higher than the target price, no subsidy will be given.