Notice of the two ministries and commissions on deepening the reform of cotton target price
National Development and Reform Commission Ministry of Finance
Notice on Deepening the Reform of Cotton Target Price
NDRC Price [2017] No. 516
People’s Government of Xinjiang Uygur Autonomous Region, Xinjiang Production and Construction Corps, Ministry of Agriculture, Ministry of Commerce, Bureau of Statistics, Supply and Marketing Cooperative:
From 2014 to 2016, the state launched a three-year cotton target price reform pilot in Xinjiang. After three years of practice, the cotton target price reform pilot has achieved remarkable results. It has explored a new way for agricultural product prices to be formed by market supply and demand and decoupled prices from government subsidies. It has achieved strategic adjustments to the national cotton production layout and driven cotton production, finishing The progress of the entire industrial chain of , circulation and fabrics has improved the quality and market competitiveness of domestic cotton, and provided practical experience for the structural reform of the agricultural supply side. With the approval of the State Council, cotton target price reform will be deepened in Xinjiang starting in 2017. The relevant matters are hereby notified as follows:
1. Guiding ideology and overall goals
Comprehensively implement the spirit of the 18th National Congress of the Communist Party of China and the Third, Fourth, Fifth and Sixth Plenary Sessions of the 18th Central Committee, and thoroughly implement the spirit of General Secretary Xi Jinping’s series of important speeches and the new concepts and new concepts of state governance. Think new strategies, conscientiously implement the decisions and arrangements of the Party Central Committee and the State Council, coordinate and promote the “five-in-one” overall layout and coordinate the promotion of the “four-dimensional” strategic layout, firmly establish and implement the principles of innovation, coordination, green, openness and sharing With the concept of development, we will deepen the structural reform of the agricultural supply side, coordinate the role of the “two hands” of the government and the market, further deepen the cotton target price reform, build a high-quality cotton production base in Xinjiang, stabilize the enthusiasm of cotton farmers to grow cotton, and enhance the competition of the domestic cotton industry. efforts to promote the continued healthy development of the cotton textile industry.
2. Main contents of reform
(1) Improve the target price formation mechanism. Continue to adhere to the pricing principle of production cost plus income, and the cotton target price level is determined based on the production cost plus reasonable income in the past three years. The specific value of reasonable income is determined by comprehensively considering factors such as the development needs of the cotton industry, financial affordability, and changes in market conditions.
(2) Reasonably determine the pricing cycle. The cotton target price level will be determined for three years. If there are major changes in the cotton market during the pricing cycle, the target price level can be adjusted in a timely manner after submitting to the State Council for approval.
(3) Adjust and optimize subsidy methods. An upper limit will be imposed on the quantity of cotton that enjoys target price subsidies in Xinjiang, and any amount exceeding the upper limit will not be subsidized. The upper limit of the subsidy amount is 85% of the national average cotton production in the base period (2012-2014).
The conditions for starting cotton target price subsidies and the central government’s fiscal subsidy methods for the Xinjiang Uygur Autonomous Region and Xinjiang Production and Construction Corps are still implemented in accordance with existing regulations.
3. Target price levels from 2017 to 2019
According to the above mechanism, the target price level of Xinjiang cotton from 2017 to 2019 is determined to be 18,600 yuan per ton.
4. Work Requirements
Deepening the cotton target price reform covers a wide range of areas and has strong policy implications. All relevant parties must attach great importance to it, effectively strengthen organizational leadership, and make careful arrangements and implementation to ensure the smooth advancement of the reform.
(1) Strengthen division of labor and collaboration. All relevant departments must perform their duties and responsibilities according to the division of responsibilities, and do a good job in relevant work. The Progress and Reform Commission is mainly responsible for taking the lead in setting target price levels, market price monitoring and determination, cost-benefit investigation and accounting, and reform monitoring and evaluation; the Ministry of Finance is mainly responsible for determining the amount of target price subsidies and fund allocation; and the Ministry of Agriculture is mainly responsible for organizing Cotton production, strengthen technical guidance and variety research and development, and improve cotton quality and competitiveness; the Bureau of Statistics is mainly responsible forCarry out surveys and statistics on cotton planting area and output data in Xinjiang; the Supply and Marketing Cooperative is responsible for organizing cotton enterprises to do a good job in purchasing and selling. At the same time, all relevant departments must strengthen coordination, improve working mechanisms, coordinate and solve problems that arise during the reform process, and work together to advance the reform work.
(2) Carefully organize and implement. The Xinjiang Uygur Autonomous Region and the Xinjiang Production and Construction Corps are the responsible entities for deepening the cotton target price reform. They must effectively follow the requirements of this notice and take into account local realities, promptly formulate specific implementation plans and carefully organize their implementation to ensure that subsidy funds are paid in full and in a timely manner to actual cotton prices. in the hands of growers. It is necessary to take advantage of the opportunity of deepening the target price reform and follow the direction of “controlling area, reducing costs, improving quality and efficiency, and ensuring capabilities” to enhance the competitiveness of Xinjiang’s cotton industry and build a high-quality cotton production base in Xinjiang. At the same time, we will actively study and explore new cotton subsidy methods, make rational use of insurance, futures and other financial instruments, select opportunities to carry out target price insurance, “insurance + futures” pilots, explore the linkage mechanism of futures and insurance, and also carry out pilot projects linking subsidies and quality, and continue to Accumulating experience will provide reference for further improving agricultural subsidy policies.
(3) Strengthen publicity and explanation. The cotton target price reform involves the vital interests of cotton farmers. The Xinjiang Uygur Autonomous Region, Xinjiang Production and Construction Corps and relevant departments must use various propaganda methods such as radio, television, the Internet, and cadres visiting villages and households, use language that the masses can understand, widely publicize the policy intention, content and significance, and respond in a timely manner social concerns, strive to create a good public opinion environment, and ensure the smooth implementation of reform measures.
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