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No Cotton Target Price Subsidy Is Expected This Year

2021/12/12 13:57:00 90

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Cotton subsidy is a matter of great concern to the majority of farmers. How is the subsidy policy for cotton target price set this year?

According to the introduction of planting industry and pesticide management in agricultural and rural departments of the autonomous region, cotton target price subsidy has the following three characteristics:

First, the government does not intervene in the market price, and enterprises purchase according to the market price, which is conducive to restoring the market vitality of the cotton industry and improving the market competitiveness of domestic agricultural products.

The second is to change the government's subsidy mode to producers from "implicit subsidy" included in the price to "explicit subsidy" directly paid, and the subsidy link is also changed from the original subsidy circulation link to direct subsidy to producers, so that the producers can get government subsidies clearly, which is conducive to reducing the intermediate links and improving the efficiency of subsidies.

Third, give full play to the role of the market in regulating the production structure, which is conducive to the emergence of producers with high efficiency and strong competitiveness, improve the degree of agricultural production organization and scale, stimulate the progress of agricultural technology, and control the rapid rise of production costs.

Cotton target price subsidy is a kind of price difference subsidy policy. Before cotton planting, the State formulates and publishes cotton target price (18600 yuan / ton), and the cotton market price is completely formed by supply and demand. When the market price is lower than the target price, the government will subsidize the difference between the two to cotton growers; When the market price is higher than the target price, no subsidy will be given.

In 2020, the subsidy standard for land cotton sales volume is 1.18 yuan / kg, and the subsidy standard for special cotton is 1.65 yuan / kg. The subsidy will be issued in the first ten days of May 2021 and completed in the middle of June. In 2021, the average market price of cotton is nearly 22000 yuan / ton, which is far higher than the target price of cotton. It is estimated that there will be no subsidy for cotton target price in this year.