This year’s Xinjiang cotton target price level is 18,600 yuan per ton
Recently, with the approval of the state, the autonomous region officially issued the “Issuance of the 2016 Xinjiang Uygur Autonomous Region Cotton Target Price Reform Pilot Work Implementation Plan” Notice”, the target price level of Xinjiang cotton in 2016 is 18,600 yuan per ton, which is 500 yuan per ton lower than 2015 and 1,200 yuan per ton lower than 2014. This is also the third year of the implementation of Xinjiang cotton target price subsidy rules.
In order to assist cotton farmers to accurately understand the reform policy, recently, the Autonomous Region’s Cotton Target Price Reform Pilot Leading Group Office published an open letter on the key points of this year’s cotton target price reform pilot policy in our region and matters needing attention. A review was made. The cotton target price announced by the state this year is 18,600 yuan per ton, which refers to the target price of seed cotton converted into lint. At the end of the year, relevant state departments will monitor the average market price of cotton in Xinjiang. If the average market price is lower than the target price, the state will issue subsidies. If the average market price is higher than the target price, the state will not provide subsidies.
If the average cotton market price is lower than the target price, the state will allocate subsidy funds to the autonomous region based on the difference between the target price and the average market price, as well as the cotton output in our region approved by the National Bureau of Statistics. The autonomous region will calculate the subsidy standard based on the total amount of subsidies, the planting area of basic farmers in the four areas of southern Xinjiang, and the total sales volume. It is very important to emphasize that the price difference mentioned here is not the difference between the actual price of seed cotton sold and the target price, but the difference between the average market price in our district and the target price after being converted into lint.
In order to ensure that everyone can get the subsidy as early as possible, the subsidy will be paid out according to the principle of “one advance allocation and one liquidation”. The pre-appropriated subsidy funds will be paid based on the statistical results of sales volume before October 31, 2016. The sales volume verification process for liquidation subsidies will end on January 31, 2017. Seed cotton sold after this date will not receive subsidies.
It is understood that the autonomous region will establish a list system for untrustworthy cotton producer subsidies. Cotton producers who are found to have participated in false reporting of areas and false invoices for subsidies will be blacklisted. Blacklisted cotton producers will not be included in the scope of cotton target price subsidies within three years. Cotton producers who are suspected of participating in subsidy fraud and have no reasonable explanation but insufficient evidence will be included in the gray list. Cotton producers who have been on the gray list for two years will be automatically blacklisted.
The reporter learned that the office of the leading group of the autonomous region’s cotton target price reform pilot work also reminded cotton purchasing companies in an open letter that starting this year, our district will establish an integrity management and governance system for cotton sorting companies. If cotton sorting companies are found to have serious violations of laws and regulations, they will be included in the blacklist of cotton sorting companies. Enterprises included in the blacklist will face severe penalties, and their business reputation will also be greatly affected. The relevant invoices issued by them will not be used as valid instruments to redeem subsidies; for serious anomalies in the acquisition, sorting, and warehousing of public inspection data, enterprises cannot If a reasonable explanation is given, cotton sorting companies that have violated regulations and the circumstances are minor will be included in the gray list. Cotton sorting companies that have been included in the gray list twice are automatically included in the blacklist. In the future, the implementation of policies related to cotton target price reform will be linked to the integrity of corporate operations. Cotton farmers will choose companies with higher integrity to sell seed cotton, and companies included in the “blacklist” will likely be eliminated from the market.
Data shows that in September this year, the price of Xinjiang seed cotton was around 6.50 yuan/kg. In early October, the price of Xinjiang seed cotton rose rapidly to more than 7.20 yuan/kg, which was significantly higher than the same period in recent years. level.
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