National Development And Reform Commission: Improving Cotton Target Price Policy

On May 25, the national development and Reform Commission issued the notice on deepening the reform of price mechanism during the period of the 14th five year plan, in which the cotton part is as follows: We should improve the cotton target price policy, improve the risk sharing mechanism, reasonably adjust the cotton target price level, and continue to explore new sustainable support policies.

The full text of the notice is as follows: 　　 ? ?

National Development and Reform Commission

Notice on action plan of price mechanism reform ?

Fgjg [2021] No. 689

?

Development and reform committees of all provinces, autonomous regions, municipalities directly under the central government and Xinjiang production and Construction Corps: ?

　　 This action plan is formulated to thoroughly implement the spirit of the Fifth Plenary Session of the 19th CPC Central Committee and the outline of the 14th five year plan, and deepen the reform of price mechanism in key areas during the period of the 14th five year plan. ?

　　 1、 General requirements ?

　　 Guided by Xi Jinping's Thought on socialism with Chinese characteristics for a new era, we should thoroughly implement the spirit of the 19th National Congress of the CPC and the second, third, fourth and fifth plenary sessions of the 19th CPC Central Committee. Based on the new development stage, we should implement the new development concept, build a new development pattern, adhere to the general keynote of seeking progress in stability, take promoting high-quality development as the theme, and deepen the supply side structural reform as the main line, With reform and innovation as the fundamental driving force and meeting the people's growing needs for a better life, we should make overall plans for development and security, adhere to the direction of marketization, adhere to the concept of system, focus on helping to achieve the goal of "carbon peak and carbon neutralization", promote resource conservation and environmental protection, improve the quality of public service supply, and better guarantee and improve people's livelihood, We will further promote price reform, improve the price control mechanism, enhance the ability of price governance, and ensure that the overall price level operates within a reasonable range. ?

　　 By 2025, the prices of competitive fields and links will be mainly determined by the market. The scientific pricing mechanism for network-based natural monopoly links will be comprehensively established, the pricing mechanism for energy and resources will be further improved, the price control mechanism for important livelihood commodities will be more perfect, the pricing policy for public services will be basically improved, and a price policy system suitable for the requirements of high-quality development will be basically established. ?

　　 2、 Strengthening and improving price control ?

　　 （1） We will improve the monitoring, forecasting and early warning system. We should use modern information technology to improve the price monitoring, forecasting and early warning system, and improve the price monitoring and analysis system and risk early warning framework. Dynamic tracking and analysis of domestic and foreign market situation, integrated monitoring of key commodity production, transportation, sales, cost, price dynamics, strengthen comprehensive research and judgment and trend analysis, and strengthen risk assessment and early warning. Deepen the cooperation with industry associations and market institutions, and improve the scientificity of analysis and prediction. ?

　　 （2） We will strengthen the price control of important commodities for people's livelihood. We will implement the requirements of improving the price control mechanism for important commodities for people's livelihood, adhere to the principle of paying equal attention to "raising" and "lowering", pay attention to pre adjustment and fine adjustment, improve the emergency control mechanism, improve the regulation ability, effectively guarantee the supply of grain, oil, meat, eggs, vegetables, fruits and milk, and prevent price fluctuations. We will establish a price range regulation system, improve the control means mainly by reserve regulation and import and export regulation, and strengthen the counter cyclical regulation of important livelihood commodities such as pigs. We will strengthen the coordination and linkage between prices and policies such as subsidies, reserves, insurance and finance. ?

　　 （3） Adhere to and improve the price support policy. Adhere to the policy framework of minimum purchase price for rice and wheat, strive to enhance the flexibility and flexibility of the policy, reasonably adjust the level of the minimum purchase price, earnestly protect the interests of farmers and the enthusiasm of planting grain, ensure the stability of ration production, and give full play to the role of market mechanism to promote high quality and good price. We should improve the cotton target price policy, improve the risk sharing mechanism, reasonably adjust the cotton target price level, and continue to explore new sustainable support policies. We will further strengthen the cost investigation of agricultural products and provide support for the formulation of price policies. ?

　　 （4） Do a good job in response to changes in commodity prices. We will strengthen the tracking and analysis of the market dynamics and price situation of iron ore, copper, crude oil, natural gas, corn, soybean, edible oil and other bulk commodities, deeply study and judge the import impact, and timely put forward comprehensive control measures and suggestions on reserves, import and export, finance and taxation, and finance, so as to promote the work of ensuring supply and price stability. ?

　　 （5） Strengthen the management of market expectation. Establish and improve the expectation management system. Focus on the overall price level and key commodities, and improve the foresight and foresight of expectation management; Through the interpretation of positive changes in market fundamentals and the government's measures to ensure supply and price stability, we should strengthen the two-way communication and information exchange between the government and the market, release positive signals and reasonably guide market expectations. Standardize the compilation and release of price index. ?

　　 3、 Further promote energy price reform ?

　　 （6） We will continue to deepen the reform of electricity prices. Further improve the price formation mechanism of provincial power grid, regional power grid, cross provincial and inter regional special projects, and incremental distribution network, and speed up the rationalization of transmission and distribution price structure. We will continue to deepen the market-oriented reform of electricity prices for coal-fired power generation, gas-fired power generation, hydropower and nuclear power generation, improve the price formation mechanism for wind power, photovoltaic power generation and pumped storage, and establish a new energy storage price mechanism. We will steadily push forward the reform of sales electricity prices, orderly promote the entry of profit-making power users into the power market, and improve the residential step tariff system. ?

　　 （7） We will continue to improve the green electricity price policy. Aiming at the industries with high energy consumption and high emission, we should improve the green electricity price policies such as differential electricity price and step price, strengthen the coordination with industrial and environmental protection policies, and intensify the implementation to promote energy conservation and carbon reduction. We will implement supportive electricity pricing policies, reduce service charges for shore power utilization, and promote the full use of shore power by ports along the Yangtze River economic belt. ?

　　 ? (8) steadily push forward the reform of oil and gas prices. In accordance with the reform direction of "regulating the middle and liberalizing the two ends", according to the independent operation of infrastructure such as natural gas pipeline network and the diversified process of exploration and development, gas supply and sales entities, we will steadily promote the market-oriented reform of natural gas valve station prices, and improve the linkage mechanism between terminal sales price and procurement cost. Actively coordinate and promote the fair opening of urban gas distribution network, reduce the level of gas distribution, strictly supervise the gas distribution price, and explore and promote the marketization of sales price of end users. Combined with the changes of energy market at home and abroad and the reform process of domestic system and mechanism, the pricing mechanism of refined oil is studied and improved. ?

　　 （9） Improve the price formation mechanism of natural gas pipeline transportation. In order to adapt to the development direction of "one national network", we should improve the price formation mechanism of natural gas pipeline transportation, formulate and issue new pricing methods for natural gas pipeline transportation, further improve the price supervision system, and reasonably formulate pipeline transportation prices. ?

　　 4、 Promote water resources price reform systematically ?

　　 （10） Innovation and improvement of water supply price formation mechanism of water conservancy projects. Establish and improve the water price formation mechanism of water conservancy projects which is conducive to promoting water resources conservation and benign operation of water conservancy projects and adapting to the investment and financing system. The pricing cost should be determined scientifically, the profit level should be determined reasonably, and the water supply price of water conservancy projects should be adjusted dynamically. We will encourage areas where conditions permit to set prices through consultation between the supply and demand sides. We will actively promote the supply and demand sides to sign framework agreements and agree on the intended price in the early stage of the project, and promote the reform of the investment and financing system and mechanism of water supply projects. ?

　　 （11） We will deepen the comprehensive reform of agricultural water prices. With the improvement of the formation mechanism of agricultural water price as the starting point, we should actively promote the classification and grading of water price, and comprehensively promote the improvement and implementation of precise subsidy and water-saving incentive mechanism, engineering construction and management and protection mechanism, and terminal water management mechanism. We will adhere to the principle of "building the mechanism first and building the project later", reasonably arrange the progress, and basically achieve the goal of reform by 2025. We should rationally define water rights, innovate and improve water rights trading mechanism, promote market-oriented trade, and promote the transfer of agricultural water rights to urban and industrial water. ?

　　 （12） We will continue to deepen the reform of urban water supply prices. Establish and improve the price formation and dynamic adjustment mechanism to encourage the improvement of water supply quality and promote water saving, and reasonably formulate the urban water supply price. We will improve the step water price system for residents and appropriately increase the price difference between different grades. In combination with the planned water use and quota water management, the system of progressive price increase for Urban Non Resident water consumption exceeding the quota shall be promoted in an orderly manner, and the system shall take the lead in the high water consumption industries with the conditions. We will encourage the exploration of establishing a linkage mechanism between upstream and downstream prices of urban water supply. ?

　　 （13） Further improve the sewage treatment charging mechanism. Combined with the improvement of sewage treatment discharge standard, the charging standard should be raised to the level of reasonable profit and compensation for sewage treatment and sludge harmless disposal costs, and a dynamic adjustment mechanism should be established. Encourage the government to purchase services, determine the level of sewage treatment service fees by means of bidding and other market-oriented methods, and establish a reward and punishment mechanism for sewage treatment service fees linked to the treatment water quality and pollutant reduction. Encourage rural areas that have built centralized sewage treatment facilities to explore the establishment of farmers' payment system. ?

　　 5、 Speed up the reform of public service prices ?

　　 （14） We will improve the price mechanism of public utilities. We should conscientiously implement the opinions on cleaning up and standardizing the charges of urban water supply, power supply, gas supply and heating industry, promote the high-quality development of the industry, eliminate unreasonable charges, accelerate the improvement of the price formation mechanism, and strictly regulate the price charging behavior. Local governments at or above the county level should be encouraged to establish a charging system for domestic waste treatment and reasonably formulate and adjust the charging standards. We will implement the measurement and charging of non resident kitchen waste. In areas where conditions permit, we will explore the establishment of a payment system for household waste treatment. We will improve the charging mechanism for hazardous waste disposal. We will improve the price dynamic adjustment mechanism linking railway freight transport with highways. We will clean up and standardize the charges at sea ports. ?

　　 （15） We will improve the price policy for public welfare services. We will further improve the price policies in the fields of education, pension, funeral, scenic spots, and public legal services. We will consolidate and improve the system of raising educational funds through various channels with government input as the main source, improve the charging policy for pre-school education, and standardize the charging for private education. In order to adapt to the new models in the field of elderly care, such as the combination of medical care and nursing, community care and home-based care, we should establish and improve the price mechanism of elderly care services, and support the development of inclusive elderly care services. We should further improve the funeral service charging policy and standardize the charging behavior. We should improve the ticket price formation mechanism of scenic spots and strengthen the supervision of monopoly service prices in scenic spots. We will improve the pricing mechanism for public legal services such as notarization and arbitration. ?

　　 6、 Do a good job in organizational guarantee ?

　　 （16） We will strengthen overall planning for reform. We should strictly implement the main responsibility of the reform body, consider the reform process in all fields, and clarify the reform timetable, road map and responsible person. We should conduct in-depth investigation and study, scientifically design reform plans, extensively listen to opinions from all walks of life, and earnestly perform legal procedures. We should adhere to the same research, deployment and implementation of news publicity and major price reform, accurately interpret the reform plan, and build consensus on reform. We should strengthen the coordination of departments, the linkage between the upper and lower levels, strengthen the work guidance, fully mobilize the enthusiasm of the grass-roots units, and form a joint force of work. ?

　　 （17） Strengthen cost supervision and audit. We should adhere to the cost supervision and audit as an important procedure for the government to formulate and adjust prices, formulate and improve the cost supervision and audit methods and operating procedures for different industries, and explore the establishment of a standard cost system. Organize cost supervision and audit in key areas such as transmission and distribution, natural gas pipeline transportation, etc. Strengthen the role of cost supervision and audit, and gradually introduce the cost incentive mechanism. Build a national unified cost supervision and investigation information system. ?

　　 （18） Grasp the bottom line of people's livelihood. We should grasp the opportunity and strength of reform, fully study and demonstrate the social affordability, do a good job in risk assessment, and improve the supporting measures for people's livelihood. The linkage mechanism of linking social assistance and security standards with rising prices should be launched in a timely manner to ensure the basic livelihood of the poor. ?

　　 （19） We will improve the rule of law on prices. We should carry out the post evaluation of price laws and regulations, improve the price legal system, and promote the institutionalization and institutionalization of price management. Revise the pricing catalogue timely. We will promote the improvement of systems and measures in the fields of price monitoring, early warning and price certification. We should study and improve the system for preventing profiteering. ?

　　 （20） Strengthen capacity building. We should strengthen the study of political theory, actively carry out professional training, strengthen the allocation of cadres, enrich the work force, and improve the ability of price work. We will strengthen the team building of cost supervision and investigation, price monitoring and price certification, adhere to the principle of keeping integrity and innovation, and improve the service center's ability to serve the overall situation. We should make full use of third-party forces to strengthen the research on major issues, basic theories and forward-looking policies in the field of price. ?

　　 All localities are requested to formulate specific plans in light of the actual situation, solidly promote the reform of the price mechanism during the "14th five year plan" period, and ensure the implementation of various key tasks. ?

National Development and Reform Commission 　 ?

May 18, 2021 ? ?

　　 (source: National Development and Reform Commission) ?

　　 ?