Cotton Target Price Reform Is Subsidized By Difference Price At Target Price Of 19800 Yuan / Ton.

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The Xiaobian net introduces cotton target price reform according to the target price of 19800 yuan / ton.

As a large cotton growing area, cotton prices have always been the concern of the majority of cotton farmers in Xinjiang.

This year, the state abolished the temporary cotton purchase and storage system, changed to target price subsidies, and carried out a pilot reform in our region.

What is the target price? Will the cotton yield be affected after the implementation of the target price system? How should the target price subsidy be implemented?

On the morning of 26, experts from the national development and Reform Commission and the Chinese Academy of Social Sciences came to the north spring town of Shihezi to explain the new policy to cotton farmers.

According to experts, approved by the State Council, Xinjiang cotton target price subsidy pilot will be launched this year. The national development and Reform Commission, together with the Ministry of Finance and the Ministry of agriculture, determines the target price level of cotton in Xinjiang this year is 19800 yuan / ton.

This marks the official curtain call for the cotton temporary storage and storage system that has been going on for many years, and the state's subsidy to cotton will be changed from "covert subsidy" to "explicit subsidy", which not only respects the market rules but also fully protects the interests of farmers.

According to the new policy, after the implementation of the target price system, the state no longer unified the storage of cotton, and cotton farmers sold cotton according to the market price.

After the average price, the difference price is subsidized according to the target price.

"For example, if the average price of cotton in Xinjiang is 12000 yuan / ton this year, the state will subsidize 7800 yuan to the autonomous region and corps according to the total cotton output in Xinjiang, and then the subsidy will be distributed to the cotton farmers in the hands of the autonomous region and the Corps."

The price of the national development and Reform Commission said that the average price was derived from the market data collected from September to November, and the total amount of subsidy was determined according to the total cotton output and difference between Xinjiang and the National Bureau of statistics.

"Subsidies are linked to the average market price of cotton in Xinjiang and do not subsidize individual farmers individually."

Experts point out that the target price of cotton is set once a year in the pilot stage, and the target price next year will be announced before planting cotton.

When the market average price is lower than the target price, the state will subsidize the difference in full; otherwise, it will stop subsidies.

Under the new policy, there will be some uncertainties in the income of cotton seed.

For example, some farmers have relatively poor cotton quality, lower prices, and some growers are on the contrary.

Subsidies are based on the average price, so the overall income of farmers who sell at high prices will be higher.

Experts therefore reminded the majority of cotton farmers should actively understand the market situation, and strengthen planting management, reduce costs, improve quality, and thus get higher returns.

Wang Zhenhai, a cotton grower in North Spring Town, said: "experts from the central government have come directly to the rural face-to-face exchange policy, and we have a comprehensive understanding of the new policy.

It is reported that

How to distribute to the growers, autonomous regions and corps has already formulated the cotton target price subsidy rules, which will be promulgated after implementation of the national examination and approval.