April 2014 state related policy The Department said that the cotton target price policy should be implemented, the temporary purchasing and storage policy should be abolished, and the producers would sell cotton at market prices. When the market price is lower than the target price, the state subsidize the producers in the pilot area according to the difference between the target price and the market price, planting area, yield or sales volume, and when the market price is higher than the target price, the state does not grant subsidies. The method of specific subsidies shall be formulated and released to the public in the pilot areas.

1, the price of last year decided that the next year's production would be a thing of the past. Cotton production and consumption cycle is one year. It takes about half a year from cotton production to listing. Once the planting area is determined, the market price changes can only affect the next year's output.

this year yield This year's price determines the next year's output depending on the price of the previous year. In the absence of the target price policy, the price of seed cotton is generally higher, the planting enthusiasm of producers is increased, the planting area is enlarged, the output of seeds is increased, the price of seed cotton is reduced, the enthusiasm of producers is reduced, the planting area is reduced, the output is reduced, and the price of seed cotton is raised.

　　 Actual price And the fluctuation of output tends to be larger and larger, away from the equilibrium point, forming the so-called "divergence spider web". Target price policy is expected to cut off the driving force of the cobweb oscillation and form a stable planting expectation in the future.

2, financial bypass for cotton production supplementary supply. The target price policy has built an external supply bridge between the cotton producers and financial subsidies in the policy implementation area. When the market is deficient in nutrients, the producers obtain nutrients that are sustained from the outside market.

The implementation of target price policy will break the cycle of cobweb oscillation caused by the fluctuation of cotton production and market prices, and improve the stability of domestic cotton production. Even if the mainstream price of seed cotton market is relatively low, under the target price policy background, Xinjiang cotton producers receive subsidies to avoid losses and ensure that the sowing area of cotton is stabilized. The target price policy forms a buffer between the low price and the sown area.

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In order to make the implementation of the cotton target price reform trial method more consistent with the actual situation of corps, it is more convenient and feasible. Recently, the Xinjiang production and construction corps development and Reform Commission recently went to the first division and two divisions of the regiment cotton area to carry out cotton target price investigation. We have heard about the cotton planting, production cost, processing, seed cotton purchase price and cotton planting and cotton spinning business in the first 3 divisions and two divisions in recent years.

Since the official launch of the pilot project of cotton target price reform in Xinjiang, the state, autonomous region and corps have been studying and formulating the "cotton target price reform pilot scheme" at different levels. Related people said that cotton target price reform involves a wide range and complicated situations, which has great influence on the economic development and income of the Corps.