How Much Can Xinjiang Cotton Target Price Be Reduced By 500 Yuan In 2016?

The website of the national development and Reform Commission announced that the country would continue to be in 2016.

Implementation of cotton target price reform pilot.

Comprehensive consideration

With the approval of the State Council, the national development and Reform Commission issued the target price of cotton in Xinjiang in 2016, which was 18600 yuan per ton.

Since 2014, Central Document No. 1 put forward the requirement to start the pilot reform of cotton target price in Xinjiang, the national development and Reform Commission, the Ministry of Finance and the Ministry of agriculture have jointly issued the target price of cotton for three consecutive years.

The target price policy is an agricultural support policy based on the market price of agricultural products, which protects producers' interests through differential subsidy. It is determined according to the production cost plus the basic income.

The target price of cotton in 2014 was 19800 yuan per ton, 19100 yuan per ton in 2015 and 18600 yuan per ton in 2016.

2014, 2015, two years, cotton target price compensation pilot area cotton production costs, and ensure that farmers get the basic income, from the price point of view, the target price level in 2016 is lower than the previous two years, then the amount of subsidies will be how much?

It is understood that as of now, the target price subsidy in 2015 has basically been issued to the cotton farmers in Xinjiang, according to the fine cotton seed cotton sale volume subsidies of 1.99 yuan / kg.

In 2015, the purchase price of Xinjiang seed cotton was basically 5.3-5.8 yuan / kg. After the subsidy was issued, the price of cotton sold by cotton farmers was equivalent to 7.29-7.79 yuan / kg.

The target price of cotton in 2016 was 18600 yuan per ton, 500 yuan less than that in 2015. According to the estimated output of 300 kg per mu of seed cotton, the average selling price of cotton seed cotton is 7.44 yuan / kg after the target price subsidy is issued in 2016, compared with 2015, the fluctuation range is 0.2 yuan / kg left and right.

Since 2015, cotton prices at home and abroad remain low.

In the past week, the average price of cotton price A index (CNCotton A) on behalf of the 2129B class cotton price in the mainland is 12597 yuan / ton. The average price of cotton price B index (CNCotton B) representing the 3128B cotton price in the mainland is 12001 yuan / ton.

Recently, Yin Jian, deputy director of the economic and trade division of the national development and Reform Commission, said at the industry meeting that the reserve cotton rotation is expected to start in mid 4. The price will follow the market trend to determine the low price of rotation, and the price linkage between domestic and international cotton market.

In the current cotton market downturn, the country issued a target price of 18600 yuan per ton, far higher than the spot market price, no doubt in order to protect the basic income of farmers and the supply and demand of the cotton market.