Cotton target price reform pilot launched: 19800 yuan per ton
On Sept. 3, the National Development and Reform Commission announced that with the approval of the State Council, the target price of cotton for 2014 was 19800 yuan per ton. According to the deployment of the State Council, the pilot project of cotton target price reform in Xinjiang was launched in 2014.
The NDRC said that the "pilot Plan for Cotton Target Price Reform" has been issued to the pilot areas, the "Xinjiang Cotton Market Price Monitoring implementation Plan" has been formulated, and the price monitoring work has been started. the specific implementation plan for the pilot work of cotton target price reform in Xinjiang Autonomous region and bingtuan is about to be announced, and all work is progressing steadily.
In April this year, the State Council announced that the country would abolish the temporary cotton collection and storage policy, and producers would sell cotton at market prices. After abolishing the temporary collection and deposit support to the market, the state will gradually implement the target price subsidy policy in the future to guide cotton production by the target price difference subsidy.
The so-called target price subsidy policy is an agricultural support policy that protects the interests of producers through price difference subsidies on the basis of the price of agricultural products formed by the market. After the implementation of the cotton target price policy, the temporary collection and storage policy will be abolished, and producers will sell cotton at market prices. When the market price is lower than the target price, the state shall subsidize the producers in the pilot area according to the price difference between the target price and the market price and factors such as acreage, output or sales volume; when the market price is higher than the target price, the state does not grant subsidies to producers, but takes the form of subsidies to end consumers.
The introduction of the direct subsidy policy will have a great impact on the whole industrial chain. The marketization of cotton price makes cotton price in line with international standards, which not only ensures the income of cotton farmers, reduces the financial burden, but also helps to cultivate the international competitiveness of textile enterprises.
In order to ensure the smooth progress of the pilot project of target price reform and maintain the smooth operation of the market after the listing of new cotton, the state will take comprehensive measures to strengthen market regulation, the National Development and Reform Commission said. First, stop the release of reserve cotton after the new cotton is listed, so as to create good market conditions for the purchase and sale of new cotton. The second is to do a good job in the purchase of new cotton and guide enterprises and farmers to actively purchase and sell. The third is to make proper arrangements for imports and encourage enterprises to use more domestic cotton. The fourth is to formulate a plan to support the bottom, and when cotton prices in the domestic market fall excessively and it is "difficult to sell", necessary measures will be taken to encourage enterprises to enter the market to buy, stabilize the market, and solve the "selling difficulties."
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