NDRC: Price difference between domestic and foreign cotton is expected to narrow to a reasonable range

On the 22nd, the National Development and Reform Commission held a press conference on the pilot project of cotton target price reform and market regulation. Wen Bugao, host of the press conference, said that since China implemented the pilot project of cotton target price reform and market regulation, the price gap between domestic and foreign cotton and soybean markets is gradually narrowing, and business confidence and market vitality are also gradually increasing. From the point of view of the cotton price difference inside and outside the new year, it is expected to narrow to a reasonable range, which will help to curb the substitution of chemical fiber and reduce the import of cotton yarn. Domestic cotton demand is expected to stabilize and pick up.

He said that in the first eight months of this year, China's CPI rose 2.2% compared with the same period last year and fell 1.2% compared with the same period last year, and the monthly CPI growth rate was between 1.8% and 2.5%, and the overall price level remained basically stable. in view of this situation, the National Development and Reform Commission, in accordance with the arrangements of the CPC Central Committee and the State Council, made full use of the favorable opportunity when the price level was low to comprehensively regulate and control the combination of "release", "management", "construction" and "reform". Dozens of major price policies and reform measures have been introduced intensively and achieved positive results, one of which is in accordance with the requirements of the No. 1 document of the CPC Central Committee in 2014 and the deployment of the State Council. we launched a pilot project to reform the target price of cotton in Xinjiang, Northeast China and Inner Mongolia.

Wen Bugao said: at present, all policies have been clearly defined, and the pilot reform work is progressing smoothly. There are mainly the following four aspects.

First, the target price level and the reform plan were released, and the target prices for cotton and soybeans for 2014 were announced in early April and late May respectively, with the target price level of 19800 yuan per ton and 4800 yuan per ton respectively, and the "Cotton Target Price Reform pilot Program" was issued in July, providing guidance for the formulation of specific work implementation plans for the pilot areas.

Second, a scheme for market price monitoring has been formulated. In July, our committee, together with relevant departments, studied and formulated the "implementation Plan for Cotton Market Price Monitoring in Xinjiang", defining the price monitoring indicators and the specific division of tasks. Since September 1, Xinjiang cotton market price monitoring has been officially launched.

Third, it has approved the specific implementation plan of Xinjiang, and with the approval of the State Council, last week, our committee approved the "pilot implementation Plan for Cotton Target Price Reform" of the Xinjiang Autonomous region and the Xinjiang production and Construction Corps. The Xinjiang Autonomous region and the bingtuan have also determined different ways to distribute subsidies in the light of their own reality, and the specific contents of the plan will be announced to the public as soon as possible by the Xinjiang Autonomous region and the Xinjiang production and Construction Corps.

Fourth, it studies and puts forward the regulation and control measures of the cotton market in the new year. The implementation of the target price system is a major mechanism innovation to improve the price and market regulation mechanism of agricultural products in our country. since the pilot project was launched, the planting area of cotton in Xinjiang has been relatively stable, and the price gap between domestic and foreign cotton and soybean markets has gradually narrowed. Enterprise confidence and market vitality are also gradually increasing. From the point of view of the cotton price difference inside and outside the new year, it is expected to narrow to a reasonable range, which will help to curb the substitution of chemical fiber and reduce the import of cotton yarn. Domestic cotton demand is expected to stabilize and pick up. In the next step, our committee, together with relevant departments, will promptly sum up the experience of the pilot reform, improve relevant policies and measures, comprehensively take measures such as import and export and reserve regulation to do a good job in market regulation and control, maintain the smooth operation of the market, and create a good market environment for the pilot project of target price reform.