Cotton subsidy policy clarified, cotton farmers can sell their cotton with confidence
Relevant departments held an inter-ministerial joint meeting on the pilot work of cotton target price reform on the afternoon of November 4. A relevant person in charge of the Economic Construction Department of the Ministry of Finance explained matters concerning the central government's subsidy to the main cotton-producing areas in the interior, and put forward requirements for the relevant interior provinces to implement the subsidy work.
The scope of the interior subsidy 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 the subsidy amount for Xinjiang, with an upper limit of no more than 2000 yuan/ton.
The central government's 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; subsidy funds are required to be managed in dedicated accounts, run 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 subsidy reaches the cotton farmers.
The meeting required the main cotton-producing provinces to formulate specific implementation plans as soon as possible, do a good job in the statistical monitoring of basic information, organize cotton purchasing well, take effective measures to prevent “round-tripping cotton”, and at the same time step up publicity so that cotton farmers can all be aware of the subsidy policy.
The China Cotton Association reminded cotton farmers that the interior subsidy policy has been clarified and that cotton farmers can sell their cotton with confidence, but they must hand their cotton over to qualified cotton purchasing and processing enterprises and keep the relevant receipts for planting and selling, so as not to affect their receipt of the subsidy.