Cotton farmer subsidies to be extended to the main producing areas of the Yangtze and Yellow River basins, NDRC confirms

The National Development and Reform Commission (NDRC) held a press conference on the 22nd regarding the cotton target price reform pilot and market regulation. Zhou Wangjun, deputy director of the NDRC's Price Department, said that on the issue of protecting cotton farmers' interests, in addition to subsidizing cotton farmers in the Xinjiang pilot areas, the state will also appropriately provide subsidies to the main producing areas of the Yangtze and Yellow River basins. This principle has now been decided by the State Council.

Zhou Wangjun said that on how to protect cotton farmers' interests, there are several lines of thinking, the first being to ensure cotton farmers' basic income. “Our target price principle is planting cost plus basic income; after planting cotton there will definitely be a basic income. Cotton production worldwide is now in oversupply, and international market prices have fallen sharply. Under such circumstances the state should protect the interests of domestic cotton farmers, and this comes first.”

In addition, he said that apart from the Xinjiang pilot areas, there are also the main producing areas of the Yangtze and Yellow River basins, and the state will also appropriately provide subsidies to them. “This principle has now been decided by the State Council; how to subsidize and how much to subsidize will be announced by the Ministry of Finance.” Zhou Wangjun also added that while implementing the cotton target price, the previous agricultural subsidy policies for farmers, including the cotton improved seed subsidy, will remain unchanged.