Xinjiang's cotton production accounts for more than half of the country

The reporter learned from the ventilation meeting convened by the Xinjiang Uygur Autonomous Region Development and Reform Commission yesterday that the overall reform of the cotton target price reform in Xinjiang has been proceeding smoothly. The market-based price formation mechanism based on market supply and demand has begun to show effects. The cotton-growing households are gradually accepting new subsidies. The environment has further improved. At present, the central government's pre-disbursement of subsidy funds is basically completed.

Xinjiang's cotton production accounts for half of the country's total. Nearly half of the households grow cotton, and 35% of the per capita net income of farmers comes from cotton. This year, China officially canceled the policy of temporary cotton purchasing and storage. In Xinjiang, pilot reforms of cotton target prices were carried out. Enterprises were purchased at market prices, and the government subsidized farmers based on the target price and market price spread.

At the ventilation meeting, Niu Xiaoping, deputy director of the autonomous region's National Development and Reform Commission, said that in Xinjiang, pilot trials of cotton target price reform were carried out to protect the interests of farmers, give full play to the decisive role of the market in resource allocation, and put prices into market decisions to promote the industry. Upstream and downstream coordinated development. According to the Implementation Plan of the Xinjiang Cotton Target Price Reform Pilot Project, the autonomous region’s finances are distributed in two parts in accordance with the total subsidy, of which 60% are subsidized by area and 40% by subsidy.

In order to ease the financial pressure on cotton farmers, the central government has allocated 3.5 billion yuan in advance to the autonomous region. On November 17, the finance department of the autonomous region broke down this part of the funds and issued them to various cities. As of December 19, according to the subsidy standard of 191 yuan per mu, the farmers had already paid RMB 3.138 billion and the payment progress was 94.4%. In January and February of next year, the partial subsidy standard by area and the partial subsidy standard by sales volume will be announced respectively. At that time, the basic cotton farmers will receive the remaining part of the subsidies by area and the funds subsidized according to the sales volume.

How to straighten out China's cotton price system not only ensures that cotton farmers grow cotton, but also guarantees that textile companies can earn money.

The National Development and Reform Commission has recently solicited opinions on the cotton system reform plan, or will directly supplement cotton in pilot cotton in Xinjiang. The so-called direct supplementation is like planting crops such as wheat and rice, and the state finances give farmers subsidies every year.

"The state's collection and storage of cotton itself is a good thing, but the result of this policy has only become unrecoverable. This will surely cause problems; Direct subsidies to cotton cultivation are also suitable for China's national conditions. First, stabilize the income of cotton farmers and put them in cotton. The price is decided by the market.” Sun Guoqing, deputy general manager of Xinjiang Agricultural Resources Group Cotton Co., Ltd., believes that the state's support of the stock market is a relatively simple one-sided measure and cannot be sustained for a long time. According to Sun Guoqing, in order to reform the cotton system, relevant national policy makers have come to Xinjiang for research.

It is reported that at present, China is engaged in the entire industry chain of cotton cultivation, cotton textiles, and garment processing and sales. The relevant industry employees have reached more than 100 million. The reform of the cotton system must take into account the interests of the entire industry. Therefore, the formulation of policies must also be considered carefully.

As for Xinjiang’s direct supplement of the pilot cotton, the reporter confirmed to the Autonomous Region Development and Reform Commission and the Corps Development and Reform Commission respectively. “We have seen this news on the Internet, but the official document has not yet been sent to us.” Relevant person in charge of the Corps Development and Reform Commission said: The direct supplement of the pilot project in Xinjiang will be good news.

"The policy is formulated by the National Development and Reform Commission, and it is unclear how specific cotton supplements will be piloted," said the person in charge of the Autonomous Region Development and Reform Commission.