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Will there be any changes to Xinjiang’s cotton target price policy?



Will there be any changes to Xinjiang’s cotton target price policy? 2month5The Central Committee of the Communist Party of China and the State Council issued the “Several Opi…

Will there be any changes to Xinjiang’s cotton target price policy?

2month5The Central Committee of the Communist Party of China and the State Council issued the “Several Opinions on Deeply Promoting Agricultural Supply-side Structural Reform and Accelerating the Cultivating of New Motive Forces for Agricultural and Rural Development”, which pointed out that it is necessary to adapt to the new situation. In response to the new requirements of the situation, we must adhere to a problem-oriented approach, adjust the focus of work, deepen the structural reform of the agricultural supply side, accelerate the cultivation of new driving forces for agricultural and rural development, and create a new situation in agricultural modernization.

Regarding the release of the Central Document No. 1 in 2017, various media outlets have interpreted the cotton-related content in the document. In addition, people from relevant policy-making departments have also spoken out in response. After three years of trial implementation of the Xinjiang cotton target price, whether the follow-up policy will be continued is a matter of concern to everyone. It is reported that the word “cotton” appears more frequently in this year’s Center Document No. 1 than in previous years. It is mentioned in four aspects, namely:

1. Coordinately adjust the grain, economic and feed planting structure, consolidate the production of cotton, oilseeds, and sugar in the main production areas, and promote the value-added and efficiency increase of horticultural crops; 2. Further optimize the agricultural regional layout, and plan the main functional areas Based on the layout planning of superior agricultural products, scientifically and rationally delineate rice, wheat, corn grain production functional areas and important agricultural product production protection areas such as soybeans, cotton, rapeseed, sugar cane, natural rubber; 3. Deepen the deepening of important grain production and protection areas Reform the price formation mechanism and purchase and storage system of agricultural products, adjust and improve Xinjiang’s cotton target price policy, and improve subsidy methods; 4. Improve the subsidy policy for the purchase of agricultural machinery, and increase subsidies for machinery and equipment required for the full mechanization of grain, cotton, oil, sugar, and forage production. .

This year’s No. 1 document proposed adjusting and improving Xinjiang’s cotton target price policy and improving subsidy methods, which are particularly worthy of attention from all walks of life. Since the implementation of the cotton target price in Xinjiang for three years, it has continued to improve and make progress in financial subsidies and payment methods, gradually reducing the area partial subsidy and increasing the output proportion (the 2016 Xinjiang target price subsidy policy stipulates that 90% of the subsidy is based on the output part, and the four southern Xinjiang Cotton farmers in prefectures and prefectures enjoy partial subsidy of 10% of the area), and the subsidy payment method is also constantly improved based on the interests of cotton farmers. It was distributed in four installments in 2014, which not only took a long time to redeem, but also brought certain difficulties to the statistical accounting work. From 2015 to 2016 (disbursed in two disbursements), the disbursement process will be optimized, the disbursement time will be shortened, and cotton farmers will receive subsidies as soon as possible. This year’s No. 1 document proposes to continue to improve Xinjiang’s cotton target price policy and improve subsidy methods. It is foreseeable that further changes will occur in subsidies and payment methods in 2017.

At the new hearing press conference held by the New Listening Office of the State Council on February 6, Han Jun, deputy director of the Office of the Central Rural Work Leading Group, said that the (cotton target price) reform was still very successful. Xinjiang will continue to implement it. As for how to “adjust and improve”, relevant departments are now studying the formulation of further policy plans. This response will undoubtedly give Xinjiang cotton farmers reassurance that the subsidy policy will continue to be implemented and the income of cotton farmers will continue to be guaranteed. Compared with the previous Xinjiang cotton target price subsidies based on area and output, the country will adjust and improve it this year. Since its implementation three years ago, Xinjiang’s cotton target price has made great progress in promoting cotton prices to return to normal and improving cotton quality, but there are also certain problems. Relevant experts from the Rural Economic Research Center of the Ministry of Agriculture said that from the practice in the past three years, there are the following two problems:

First, it is more difficult to set target prices, which will eventually become the result of a game between different departments and different stakeholders. Due to the different interest demands of different entities and different departments, inconsistent policy views, and different understandings of industry progress, the opinions of all parties are becoming more and more divergent, making it increasingly difficult to set target prices; second, market entities have unclear expectations for the target price level . The production cost of finished cotton increased from 2014 to 2016, but the target price of cotton continued to decrease. It is unclear whether it will continue to be lowered or how it will change in the future, which is not conducive to the production decisions of market entities.

In addition, the target price subsidy implemented in our country is a “yellow box subsidy”, and its subsidy amount is subject to the upper limit of de minimis consent. According to China’s WTO accession commitments, the amount of “yellow box” subsidies for specific varieties in my country shall not exceed 8.5% of the total output value of that variety that year. If measures are not taken to avoid this in the future, it may raise questions from other member states and lead to trade disputes. In short, the introduction of Xinjiang cotton target price details in 2017 has a long way to go. No matter how cotton is subsidized in the future, the cotton planting rights and interests of Xinjiang cotton farmers will always be protected. This gives reassurance to the majority of Xinjiang cotton farmers!

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