Implementation Of Target Price Subsidy Policy For Cotton Industry In China

(1) the change of cotton market price from "policy market" to "expected market".

Prices are moving from temporary storage to market prices to market prices.

In the past, the effect of temporary purchasing and storage policy on "regulating prices" and "buying and selling at the bottom" was obvious.

Judging from the purchase price of seed cotton in the past three years, except for the first rise and fall in 2011/2012, cotton purchase price has basically remained at a high level and stable operation. In the 2011-2013 year, the seed cotton purchase price is 8.40 yuan / kg, 8.74 yuan / kg and 8.90 yuan / kg respectively.

Judging from the current implementation of the target price, from September 1, 2014 onwards, the NDRC will work with the Ministry of finance, the Ministry of agriculture and the central reserve cotton company.

The association carried out cotton target price monitoring work, the monitoring period is September -11 end of the month, a total of 3 months.

According to the Ministry of agriculture's monitoring data, the purchase price of seed cotton in September -11 was 6.38, 6.13 and 5.71 yuan respectively, and seed cotton purchase price gradually declined.

From the current monitoring data compared with previous years data, with the introduction of the national temporary purchase and storage policy in the acquisition of cotton, the purchase price of cotton has declined significantly, from the past "policy market" to the "expected market" of the market gradually, from the current situation, the cotton price is in a downward channel, and will continue for a period of time.

In the future, the determination of the target price level in the pilot stage will adopt the method of production cost plus basic income, and determine it once a year, so as to adjust in time according to the changes in the pilot situation, and announce it before the sowing of crops, so as to send a clear signal to farmers and markets, guide farmers to plant rationally and arrange agricultural production.

The target price subsidy is to subsidize the growers in the experimental area, which is linked to the actual planting area or the output and sales volume of the crops.

In 2014, Xinjiang's target price subsidies were subsidized by the combination of the actual cotton planting area and the seed cotton sale volume. The central subsidy fund was subsidized by 60%, and 40% was subsidized by the actual seed cotton sale volume.

The basic process of target price subsidy is divided into three steps, one is the formulation of subsidy plan.

The central government allocated subsidies to the autonomous region at the end of December of that year. In the early January of next year, the autonomous region formed a unified subsidy plan, which was reported to the leading group of the target price experiment and the autonomous regional government for deliberation.

The two is to calculate the subsidy information.

County and city departments of agriculture and other relevant departments have carried out verification of area and output. The agricultural sector has issued planting certificates, processing enterprises have provided the selling invoices to producers who sell cotton, the government departments have examined the subsidy information according to the actual situation, and the three is subsidies.

If the market price is lower than the target price after the end of the price period, according to the difference between the target price and the market price and the output of the National Bureau of statistics, the central government will approve the total subsidy for each pilot province (region) and allocate the subsidy to the pilot area at one time.

According to the actual situation, the pilot provinces and autonomous regions shall formulate a specific subsidy method, which is responsible for the timely and full payment of the subsidy funds allocated by the central government to the growers.

It is reported that as of December 19th, the first batch of 3 billion 500 million yuan subsidy funds allocated by the state to the local government has actually paid 3 billion 138 million yuan and the payment schedule is 94.4%.

Follow up national subsidy funds will be allocated in the near future.

In January 2015 and February, Xinjiang will separately announce the subsidy standard and the subsidy standard.

(three) some problems in the implementation of policies.

1., the subsidy link is imperfect, and the basic operation needs to be strengthened.

In 2014, according to the "Xinjiang cotton target price reform pilot project implementation plan", cotton growers and cotton growers should provide identity cards and planting certificates when they sell seed cotton.

Due to the first year's trial, the issuance of certification was not timely in some areas, which led to a certain impact on the progress of the sale.

In addition, there is a large number of land leased cotton growing in Xinjiang. However, the actual subsidy does not supply the growers. There is still a hidden danger between the tenants and the lessee because of the subsidy problem.

The target price involves agriculture, finance, statistics, land and judicial departments. The work is complicated and cumbersome.

2., market risks increase, bank loans are cautious, acquisition funds are tense.

In recent years, because of the temporary purchase and storage policy, the direct purchase of China cotton reserves did not exist.

Today, the cotton mill directly returns to the market, the market risk is increasing, and the mortgage loan of banks has also become prudent. In particular, some enterprises without loans from the Agricultural Development Bank have been strained capital.

3. catastrophe risk prevention is not enough, supplementary compensation measures are inadequate.

In October this year, a snowy and snowy weather occurred in Xinjiang, which caused a certain impact on the picking of cotton, and caused damage to the quality and quality of cotton.

China's cotton target price subsidy is currently considering the normal market situation. If there is a big natural disaster, resulting in the cotton harvest and so on, then how to compensate the target price and how to build a safety net mechanism to protect the basic income of farmers needs to be further explored and perfected.