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What Is The Meaning Of Cotton Target Price Policy?

2014/6/21 10:15:00 28

Clothing Shoes Hats Cotton Cotton Policy

entangled in the details of the varieties, do not believe in the self repair function of the "rational economic man", lack of subsidies for the difference in price, and worry that the implementation of the new policy will make the negative effect of the temporary storage policy expand.

the policy has milestone significance .

interpretation of target price

a href= "http://sjfzxm.com/news/index_s.asp" > target price policy < /a > is an agricultural support policy based on the market price of agricultural products and protecting the interests of producers through differential subsidy.

after the implementation of the cotton target price policy, the temporary purchase and storage policy should be abolished, and the producers will 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, production and sales volume, and when the market price is higher than the target price, the state does not grant subsidies.

the specific subsidy payment method is formulated by the pilot area and released to the public.

The target price is determined according to the production cost plus the basic income.

early April 2014, the national development and Reform Commission, the Ministry of Finance and the Ministry of agriculture jointly issued the target price of cotton in 2014, at 19800 yuan per ton.

through the above statement, the most basic and key principle of the target price policy pilot is to carry out marketization.

The marketization design mainly covers three variables: the target price, the market price and the difference subsidy.

Among them, the target price is fixed quantity, and the market price and subsidy amount are mutually restrictive variables.

target price policy is conducive to the stable development of China's primary industry

from a small point of view, the continuous implementation of the 3 year's < a href= "http://sjfzxm.com/news/index_s.asp" > cotton temporary storage policy < /a > has more disadvantages than benefits and is difficult to sustain.

Since 2011, the cotton temporary purchase and storage policy implemented by the state has played an important role in stabilizing domestic cotton production and protecting the interests of farmers. However, as the price of international market continues to decline, the contradiction between cotton import cost is much lower than that of temporary purchase and storage price, the contradiction between the state and the financial pressure has become increasingly prominent, the financial pressure of the state has been increasing, the rent-seeking behavior of related interested parties has been aroused, the downstream industry has been restricted by high raw material costs, the international competitiveness has been weakened rapidly, the market main body vitality has been reduced sharply, the market mechanism has been regressive, and the development of the entire industry has been in an unprecedented predicament.

Based on this, it is imperative for the state to explore the marketable cotton control policy under the new market situation.

from a big point of view, the target price policy is "the front stop" for the market-oriented policy reform of the entire agricultural product target price.

At present, including cotton, the state has implemented reserve policies such as open storage and minimum purchase price in sugar, soybeans, rapeseed and grain.

In recent years, domestic prices are higher than international prices, the pressure on national reserves has been increasing, the market elements have been weakened, and a large number of state financial funds have been occupied. Relatively, through the international commercial trade, a large amount of subsidized funds are grabbed by international agricultural growers and international downstream enterprises, and the negative impact of the policy of purchasing and storing has begun to appear.

cotton target price policy, as a pilot project, is not only a milestone for cotton varieties, but also for other cash crops and even grain crops.

Therefore, this "first artillery" must start and must not be foolishly launched.

If we fail to achieve the purpose of forming a market-oriented pricing policy, it will bring serious consequences. In the end, we will not even rule out the embarrassment of negating the target price policy itself.

Therefore, we should eliminate the resistance of various interest groups, abandon the details of specific varieties, and launch the policy of cotton target price reform completely according to the market thinking. Finally, we will conclude a set of fixed modes (or mechanisms and templates), which is of great significance to the steady development of the whole P industry in China.

factor analysis of restricting rules promulgated

the policy formulation is not high enough, and is entangled in variety details /p >

for the cotton target price policy, policymakers should take a strategic position and consider from the whole agricultural product, even from the height of agricultural stability strategy, they should not be too obsessed with the details of the breed.

in fact, all varieties have particularity, and the most important thing is to design common things, including core elements, regulatory system, legal system (penalty cost), maintain their authority, and publicize strictly according to the three principles.

The specific details are made by the relatively independent party to make the release and accept social supervision.

Finally, summarize the experience of the model, and gradually improve the promotion.

do not believe in the self repair function of the market main body "economic man" /p >

At present, China has formed a relatively perfect market economy system at P.

Although oral emphasis is placed on the role of the market and respect for the market players, but when it comes to specific policies, policymakers are always worried that market participants will collude with each other and then doubt the self repair function of the market players, that is, "rational economic man", which leads to a big package of things, and no matter how big they are, until finally they fall into the details, and forget the most original intention of making policy.

in fact, the target price policy formulation and decision makers are most worried about the joint fraud of cotton growers and ginning factories to obtain financial subsidy funds.

After careful analysis, the combination of cotton growers and ginning plants will surely lower the international and domestic market prices.

China's downstream textile industry will benefit from it.

This is a good thing for the country. After all, the upstream and downstream enterprises of the industrial chain are their own "children".

In the long run, however, the ginning plant will obviously be damaged from the lower selling price of lint.

Xinjiang has vast territory in the South and North Xinjiang. < a href= "http://sjfzxm.com/news/index_s.asp" > cotton farmers < /a > it is difficult to form a joint force with the ginning factory.

At the same time, set a longer sample time cycle and subsidize the average price. For cotton farmers, the price is lower and the average price can only be subsidized.

Therefore, instead of risking illegal risks, it is better to choose the most advantageous behavior for them to follow the market rules.

In addition, the market participants will not take risks because of the cost of supervision and supervision mechanism and the cost of laws and regulations.

the difference allowance for the three variables is less than .

in the fear of "rational brokers", the policy will set a maximum subsidy limit intentionally or unintentionally.

As we mentioned before, there are three variable factors in the target price policy. Generally speaking, the target price will be fixed in advance. If the subsidy amount of the difference is fixed, the market price of the natural variable will also be fixed, so there will be no real market price.

Eventually, it will inevitably lead to a dead end from a blind alley.

In fact, we simply use the "Z=X+Y" formula to analyze whether X, Y or Z. As long as two are determined, third variables are naturally determined.

The government's support for agricultural market prices, direct payments and other forms of protection, such as price, export or other forms of subsidies for agricultural products such as grain, usually have a direct and significant distortion effect on output structure and agricultural products market. This is known as the "yellow box policy". WTO agricultural agreement does not agree with the "yellow box policy". P

China has joined the WTO, and the "yellow box policy" is limited.

For local cotton ginning plants in Xinjiang, especially the Corps, simply limiting the amount of subsidies will automatically set corresponding sales prices for seed cotton processing into lint, otherwise, sales will be lower than this price, and losses will be inevitable.

Therefore, the Corps as a special body, the country really need to find ways to compensate through other channels.

worry that the implementation of the new policy will make the negative effect of the temporary storage policy expand. /p >

from the national level, the most important thing is to temporarily put aside the cost and loss of the current about 13000000 tons of state cotton and put aside the concept of "position cost", and simply focus on the market policy of the cotton policy and the healthy and stable development of the industry.

This position cost is not small at first, but it will be worth losing even if it can bring about a steady and healthy development of China's cotton industry.

Our proposal is that when formulating this policy, the decision-makers must learn to count big accounts, instead of sticking to the old ideas, being disturbed by the small accounts, and unable to jump out of this strange circle.

Xinjiang local ginning plant, or corps, as a special region and system under the enterprise, the importance is obvious to all.

But from the perspective of China's long-term development, it is increasingly difficult to earn money by lying in the arms of the state depending on the system or policies. They should also accept the reality of marketization.

The state can make interim policy support through special subsidies and annual accounting verification.

This is entirely possible.

in addition, the participants in policy making, including the central storage cotton and the trading market, are also stakeholders. When making suggestions, we must stand at the angle of the overall interests of the state and stand at the angle of protecting the growers, standing at the angle of sustainable and healthy development of the cotton industry chain, otherwise the market will be difficult.

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six suggestions in the current environment

the market price and the allowance amount are entirely determined by the market

in the principle of policy formulation, it is necessary to give the market a clear signal: the target price is fixed, the cost of planting plus basic income should be comprehensively and objectively assessed dynamically through different channels every year, and the allowance amount will depend on the market price during the period of acquisition.

if the amount of subsidy is fixed in advance, the market price is basically fixed. The original intention of the policy is to play the decisive role of the market in cotton pricing and resource allocation.

according to the three principles, the core index is publicized .

target price refers to the price of lint cotton. From the purchase price of seed cotton to the price of lint cotton, the important parameter index and time selection cycle must be scientific and rational, and only to determine its authority.

specific point of view, for example, the uniform set of lint percentage is 40%, the wastage is 2%, and the processing fee is 1000 yuan / ton. There are certain differences between these indexes because of the different processing subjects and picking methods, but the publicity must be based on the consideration of average level.

In addition, it is necessary to emphasize the simplification of operation and avoid too many index grades to avoid false phenomena in the process of conversion of lint price to lint price.

in addition, the market price publicity and sampling cycle should not be limited to 10 to December. We can consider extending the time. From October of that year to March of second, we choose 6 more months to select more samples, so that the average price is more reasonable, so that cotton farmers can have more sales time and avoid the short-term manipulation caused by the disparity of power between cotton growers and ginning plants.

, we must directly send the subsidy funds to the cotton growers, and can not be pferred to any intermediate link, to guarantee the maximum amount of subsidies, to protect the interests of cotton farmers, and to achieve the greatest intention of target price subsidies.

do a good job of supervision and supervision work

first, set up inspection teams with high specifications to monitor acquisition links and data sampling links.

a joint working group was set up at the national level to strengthen supervision over all links such as seed cotton sale, processing and purchasing of ginning mills, warehousing and storage, notarization inspection and so on.

The area and output data should be sampled and submitted, and the impartiality and objectivity of the accounting should be reviewed, so as to severely crack down on the relationship of interests and the act of pporting and swindling national financial funds.

the working group must be given higher authority and status to serve the pilot reform of China's agricultural product policy marketization.

Second, formulate relevant laws and regulations, and improve the cost of punishment.

In addition to supervision and supervision, we must develop relevant laws and regulations from the perspective of maintaining the market adjustment of China's entire agricultural products industry policy, improve the cost of punishment, and carry out relevant economic and criminal responsibility for the bad behavior through legal means. P

detailed rules shall be formulated by relevant pilot varieties and relevant pilot areas to make .

specific implementation measures of target price policy can be formulated by pilot areas of pilot varieties.

In the process of making the pilot area, must strictly abide by and maintain the authority of the central government. From the perspective of the central government, it can not be interfered by any interest groups.

provide supporting market tools platform, implement the policy reform

in the use of target price policy to protect the interests of the top growers, we must also vigorously develop the agricultural insurance market, develop large-scale cotton planting specialized households, cooperatives and farms, seriously cultivate the futures and options market trading platform of agricultural products (cotton), and encourage market participants to take the initiative to take advantage of these market means for risk aversion and enhance the ability to resist risks, so as to achieve the best implementation effect of the policy.

dumping and storage policy is further standardized and can be expected to be /p >

for the 10 million tonnes of resources in the current national reserve, we should also play a good role in regulating the market supply and demand in the process of implementing the target price policy. We should try to work out a cotton policy that can be expected to be linked to the supply and demand of cotton resources in stages, and break the simple appeal of the enterprises -- the temporary meeting of departments -- the policy of throwing aside one case and one discussion, giving the market parties a stable expectation and reference.

for example, during the implementation of the target price policy in the cotton year, the state can raise the average seed cotton purchase cost and the number of consecutive days during the publicity period according to the spot price of the lint market (by tracking the CNCOTTON or CCINDEX price index), and automatically start the fusing system for throwing and storing.

To give traders, downstream textile and consumer enterprises and other industrial chain stability expectations.