Xinjiang Cotton Direct Subsidy Policy May Be Formally Promulgated In April.

Xinjiang cotton direct subsidy price is likely to come out in April.

Many authorities revealed that 2015/2016 cotton season, Xinjiang

Target price is reduced to a large probability event.

Xinjiang development and Reform Commission said that the 2015/2016 cotton season, Xinjiang cotton direct subsidy target price may be introduced in April.

According to authoritative sources, at present, the target price setting of Xinjiang's new cotton is divided into two groups for the 2015/2016 cotton season.

One group advocated fine adjustment, from 2014/2015 cotton season's 19800 yuan per ton direct subsidy target price, reduced to 19000 yuan / ton.

The other group believes that the fine-tuning is of little significance. The parties should "make profits" and choose the middle price. In the 2015/2016 cotton season, the target price of cotton direct subsidy in Xinjiang will be reduced to around 17500 yuan / ton.

The party who supports fine-tuning is mainly cotton growers in Xinjiang.

Xinjiang development and Reform Commission said that the 2015/2016 cotton season, Xinjiang cotton direct subsidy price unchanged possibility is very low, but from the perspective of Xinjiang, hope 2015/2016 cotton season, Xinjiang cotton direct target price in 19000 yuan ~19800 yuan / ton.

The source said that at present, the average cost of planting cotton per mu in Xinjiang is around 2800 yuan. According to the target price of 19800 yuan per ton in the 2014/2015 cotton season, cotton growers earn less than 1000 yuan per ton.

While the side that supports a bigger reduction thinks that the fine-tuning is of little significance. At present, the actual price of cotton has been far lower than the direct subsidy target price of 19800 yuan / ton of 2014/2015 cotton season, which has caused great pressure on the national finance.

At the same time, too high subsidy prices are not conducive.

Industry "progress" has resulted in low level operation. At present, the cost of cotton planting in the world's major cotton producing countries, the United States, Australia and India is much lower than that of China.

2015/2016 cotton season, Xinjiang cotton direct subsidy price will affect cotton cultivation in Xinjiang.

Market participants, such as the 2015/2016 cotton season, Xinjiang cotton direct subsidy prices sharply reduced, Xinjiang cotton planting will likely decline significantly, the supply may reduce the number of imported cotton may increase substantially, or by the national cotton store put cotton stocks to meet the market demand.

At present, Xinjiang's cotton output accounts for over 50% of China's total cotton output.

Country

Inventory exceeds 10 million tons, exceeding the annual consumption of cotton in China.