Cotton Price Reform Pilot Advances: NDRC Has Launched Monitoring Work

According to the NDRC, in accordance with the deployment of the State Council, the Xinjiang cotton target price reform pilot was launched in 2014. With the approval of the State Council, the 2014 cotton target price has been announced at 19,800 yuan per ton; the "Cotton Target Price Reform Pilot Plan" has been issued to the pilot areas; the "Xinjiang Cotton Market Price Monitoring Implementation Plan" has been formulated, and price monitoring work has already started; the specific implementation plans for the cotton target price reform pilot in the Xinjiang Autonomous Region and the Xinjiang Production and Construction Corps will soon be announced, and all work is steadily advancing.

To ensure the smooth progress of the target price reform pilot and maintain stable market operations after new cotton comes onto the market, the state will adopt comprehensive measures to strengthen market regulation. First, after new cotton comes onto the market, the release of reserve cotton will be stopped to create favorable market conditions for the purchase and sale of new cotton. Second, do a good job in purchasing new cotton, guiding enterprises and farmers to actively buy and sell. Third, properly arrange imports and encourage enterprises to use more domestic cotton. Fourth, formulate a bottom-line contingency plan: when domestic market cotton prices fall excessively and "difficulty in selling" occurs, necessary measures will be taken to encourage enterprises to enter the market and purchase, stabilize the market, and resolve "difficulty in selling."