The Price Difference Between Inside And Outside Cotton Will Be Reduced To A Reasonable Interval.

China is not only the largest cotton producing country in the world, but also the largest cotton consuming country.

What impact will the cotton target price reform have on cotton planting in Xinjiang this year? What impact will it bring on the whole industry? The national development and Reform Commission held a news conference on "cotton target price reform pilot and market regulation" in September 22nd, and focused on the hot issues of cotton target price reform over the past year.

"Since the launch of the target price reform pilot, the planting area of cotton in Xinjiang has been relatively stable, and the price difference between domestic and foreign cotton has been narrowing gradually, and the confidence and vitality of the market have also been gradually enhanced."

Wen Tao Gao, deputy director of the national development and Reform Commission, said that with the steady progress of the reform, the cotton price difference between the new year and the new year is expected to shrink to a reasonable range.

It is reported that Xinjiang's new cotton has started listing.

Market monitoring shows that the price of seed cotton is 3.3 yuan per catty, and the price of cotton seed converted to lint is about 14000 yuan per ton.

In the international market, the price of the lint main contract in the US futures market last week was 11800 yuan per ton.

Zhou Wangjun, deputy director of the price department of the development and Reform Commission, believes that the international cotton price will probably not drop again in the future, and domestic cotton prices will also stabilize at the current level or fluctuate at 14000 yuan per ton.

Liu Xiaonan, deputy director of the economic and Trade Department of the development and Reform Commission, said that after the implementation of the target price reform, the price of cotton will be formed by the market, and the linkage between the domestic and international cotton market will be strengthened, and the difference between inside and outside cotton will be further reduced.

On the one hand, this will help to curb the trend of replacing cotton with chemical fiber. On the other hand, the trend of cotton yarn imports may weaken, and domestic cotton demand is expected to stabilize and recover over the previous year.

In April this year, the state announced the target price of cotton in 2014 was 19800 yuan per ton, while the current market purchase price is only 14000 yuan per ton. Can cotton farmers enjoy the national price subsidies?

"We design

The most fundamental mechanism is that the price of cotton must be determined by the market.

Zhou Wangjun said that the target price is the sum of farmers' planting costs and basic income. The difference between the target price of 19800 yuan / ton this year and the actual purchase price of 14000 yuan / ton is 5800 yuan, that is, the amount to be subsidized to cotton farmers.

It is reported that the final determination of the cotton market price this year will also calculate the actual price according to the average price of cotton sold by farmers in the 3 months of September, October and November.

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How can we ensure the basic income of cotton growers in China when the supply exceeds demand and the international market prices drop sharply?

It is said that the design of target price has already incorporated the basic income of cotton growers, and the first thing is to protect the interests of cotton farmers. However, cotton farmers themselves should bear the corresponding market risks. "The target price has a guiding role, and the target price of output is very long, and the target price guides farmers to grow less. When the output is declining, the target price can guide farmers to be more diversified. This is the goal to be achieved".