When will the cotton price subsidy be implemented?

In early December, the author saw in many villages of Quzhou County, Hebei Province, a traditional cotton area, that every cotton farming household had stored up stacks of cotton, showing this year's bumper cotton harvest.

In recent years, although the area planted with cotton has decreased year by year, many farmers are still unwilling to give up growing cotton. Liu Erhai of Qiaobao Village, Huaiqiao Township, said happily: "This year's cotton output hit a record high. In the past, each mu of land produced 500 jin of seed cotton; this year each mu can produce 700 jin of seed cotton, and some can reach 800 jin of seed cotton. There has never been such a good year." Many cotton farmers said that with the good weather this year, the cotton not only had high output but also good quality, with very few moldy or rotten bolls.

But as soon as the conversation turned to this year's cotton price, the cotton farmers immediately lost their cheerful looks.

"High output, good quality, but the price is no good." Grandpa Zhang of Zhangzhuang Village said: "At first, cotton peddlers came to the village to buy cotton at 3.2 yuan per jin of seed cotton. Now the price of seed cotton has dropped to 2.9 yuan per jin, and still hardly anyone comes to buy. A few years ago, the price of seed cotton reached 6 yuan per jin. Only when a jin of seed cotton sells for 4 yuan can cotton farmers break even. If it is sold at more than 2 yuan per jin, the cotton farmers will all lose terribly."

In the view of the cotton farmers, this year's low cotton price is related to the cancellation of the state's temporary cotton purchase and storage policy. In previous years, when enterprises purchased state-reserved cotton, the price was guaranteed. This year the temporary purchase and storage policy was canceled, which had a great impact on the market.

Not long ago, the cotton farmers all heard that the state has a subsidy for cotton production, but they hope such a good policy can be implemented as soon as possible, with detailed rules for issuance formulated early, so that the cotton farmers can feel secure sooner. Some cotton farmers said that they read in the newspaper that "cotton must be sold to qualified cotton purchasing and processing enterprises, and the cotton delivery receipts must be kept well to avoid affecting the receipt of subsidies." But in Quzhou County, the government still needs to make clear provisions on which enterprise's receipt for selling cotton can be used to receive subsidies, so as to ensure that the interests of cotton farmers are not harmed.

Some cotton farmers also said that if there are still no specific implementation measures before the Lunar New Year and the subsidy funds cannot be issued, then by the beginning of spring next year, the farmers will have no money in hand, which will certainly affect production.

Zhang Tongbao, Balizhangzhuang, Quzhou County, Hebei Province

Policy link

Recently, the central finance authorities determined the subsidy scope and standard for the main inland cotton producing areas. The inland subsidy scope covers 9 provinces: Shandong, Hubei, Hunan, Hebei, Jiangsu, Anhui, Henan, Jiangxi and Gansu. The subsidy standard for 2014 is 2000 yuan/ton. The subsidy standard for subsequent years is based on 60% of Xinjiang's subsidy amount, with an upper limit of no more than 2000 yuan/ton.

It is understood that the central finance authorities' subsidy to the main cotton-producing provinces is based on the cotton output determined by the National Bureau of Statistics; the subsidy method is decided independently by each province, which may choose to subsidize by area or by output; the subsidy funds are required to be managed in special accounts, operated in a closed manner, and used exclusively for their designated purpose, and may not be reserved, diverted or misappropriated, so as to ensure that the subsidies are delivered into the hands of cotton farmers.