Direction Of China'S Cotton Target Price Subsidy Pilot Policy In The Future

The future direction of the cotton target price subsidy pilot policy is to consider comprehensively the effects of the pilot policy, the reaction of the market participants, the recognition of the local government, the competitiveness of China's cotton and the special regional conditions in Xinjiang.

From the perspective of future development, due to the difficulties in the promotion of mechanization of cotton production and so on, the cotton production in the mainland will continue to shrink. The focus of cotton production in China will be concentrated in Xinjiang.

In view of this low competitiveness and the trend of industrial regional layout, it is necessary to implement supportive policies for cotton production in Xinjiang.

Through the analysis of the implementation of the pilot policy, after the implementation of the pilot policy of cotton target price subsidy, the market formation price mechanism was basically established, correcting the market distortion, rationalizing the distribution pattern of the upper and lower reaches of the industry, narrowing the price difference between the domestic and foreign cotton, improving the competitiveness of the domestic textile industry, and stimulating the vitality of the main body of the industrial chain.

Farmers' interests have been protected to a certain extent, giving full play to the role of stabilizing cotton production.

At the same time, compared with the temporary collection and storage policy, the "covert subsidy" was changed to "Ming bu", which improved the efficiency of subsidies and reduced the loss of social welfare.

Since the launching of the pilot policy of cotton target price subsidy, Xinjiang has been relatively authorized to invest a lot of manpower, material and financial resources in policy implementation, and has set up an information platform for target price reform and related supporting measures, laying a good foundation for policy implementation, and accumulating better experience for other local and other varieties to explore the pricing mechanism reform of agricultural products.

The minority nationalities in Xinjiang account for a relatively large proportion. The level of cotton culture is generally not high. Especially in the southern Xinjiang (the proportion of the minority population in the four prefectures of Xinjiang is 90% or more), it is extremely difficult to understand and accept a policy.

The target price has been implemented for two years, and the local government and the vast number of cotton farmers are

Knowledge is in place, and the details of policy have been well understood. Therefore, the current policy itself and the overall framework should not be changed frequently.

In addition, according to the market monitoring and early warning system of the Ministry of agriculture's cotton industry chain in early 2015, the satisfaction survey of 701 cotton growers, 21 textile enterprises and 55 processing enterprises in Xinjiang area showed that the satisfaction degree of the pilot policy of cotton target price subsidy reached 86.4%, 100% and 46% respectively (the survey time was 2015). Compared with the temporary purchase and storage policy, the low satisfaction degree of the processing enterprises to the target price policy is normal, because the processing enterprises need to face the market risk directly under the target price policy.

China is the largest cotton consuming country in the world.

Industrial foundation and strong textile processing capacity.

Cotton consumption in the past two years is about 7 million tons, accounting for about 30% of the world's cotton consumption.

According to industry experts, 65% of the total cotton supply in China is used to meet domestic demand, and 35% is exported to the textile market to meet the needs of the international market.

For such a textile and garment production and export country, maintain certain

The self sufficiency rate of raw materials is very important.

But compared with other main producing countries, China's cotton production is small, production cost is high, labor productivity and resource output rate are low, and cotton competitiveness is not strong.

In 2014, the cost of cotton production per mu in China reached 2278.6 yuan, 3.2 times that of the United States and 4.2 times that of India.

According to the regional pattern of cotton production in China, the scale of cotton production has rapidly shrunk in the the Yellow River basin and the Yangtze River Basin in recent years due to the high labor cost and low efficiency of cotton production. In 2015, the cotton planting area and output of the inland the Yellow River River Basin and the Yangtze River valley cotton accounted for 49.9% and 37.5% of the total national total.

Xinjiang is located on the border, and its economic development is relatively backward. The cotton industry plays a decisive role in the economic and social development of Xinjiang. The output value of cotton accounts for about half of the agricultural output value.

50% of the farmers in Xinjiang are planting cotton, and more than 70% are ethnic minorities. The income of cotton planting accounts for about 35% of the net income of farmers. Especially in the southern Xinjiang, more than 90% of the county's cotton is planted. The income of cotton planting is an important source of income for the local minority people.

Although the target price policy does not bear the goals and obligations of social stability from the perspective of policy itself, it actually bears the mission and task of ensuring employment and protecting the income of farmers in Xinjiang, especially in southern Xinjiang.

From the perspective of social stability and national unity, it is not appropriate to cancel the subsidy policy hastily.