The Xinjiang Uygur autonomous region’s government launched a pilot program on Wednesday [17 September 2014] to allow local cotton growers to sell their produce at market price, ending the nationwide cotton purchase and storage policy that has been in place since 2011. In 2011, the central government introduced a plan to ensure that cotton farmers received a fair price for their produce and were not affected by market fluctuations in the wake of the global financial crisis. Since then, almost all of China’s cotton has been purchased by the central government, which has control over prices…Full Article: China Daily Sept 2014
- In April 2014, China’s NDRC announced it would abolish the minimum purchase price and instead would set CNY 19,800 (~US$3,224) per MT as the reference price. If the free market price falls below the reference price, then farmers will receive a subsidy based on the quantity of cotton sold in February 2015 (harvesting is occurring now).
- The Chinese government plans to raise the number of those employed in Xinjiang’s cotton industry from 200,000 to 1 million by 2020.
- In July 2014, the government announced plans to allocate CNY 20 billion ($3.2 billion) into Xinjiang’s textile industry in order to boost employment.