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Xinjiang’s Experience in Promoting Target-Oriented Cotton Price Reform (No.46, 2019)


By Qin Zhongchun, Research Team on “Cotton Target Price Reform Policy”, Research Department of Rural Economy, DRC

Research Report, No.46, 2019 (Total 5546) 2019-4-3

Abstract: Since 2014 when the target-oriented cotton price reform in Xinjiang Uygur Autonomous Region was launched, the reform has achieved major results and gained rich experience with distinctive local features. Compared with the previous cotton reform, soybean reform in northeast China and the reform in some other cotton-growing areas, Xinjiang’s experience can be summed up as follows. First, with regard to the target-oriented reform, the government has lifted price controls over production and marketing, strengthened the construction of market-oriented system, let the market play a decisive role in resource allocation and enabled the government departments to play a positive role. Second, as regards reform measures, the government has provided more subsidies to protect the interests of cotton farmers through macro-based calculation in giving out differential subsidies and micro-based provision of subsidies according to the sales volume of cotton, growing areas and the quality of cotton. Third, with respect to reform methods, the government has enforced production and marketing supervision, deepened the reforms designed to delegate powers, improve regulation and provide better services and improved the government’s ability of social governance. Fourth, in view of reform operation, the government has established information platforms, reduced the cost of policy operation and continuously accumulated industrial data. Fifth, in respect of reform adjustment, the government has, based on policy cycle, established a dynamic optimization mechanism through appropriate modifications of the existing measures. Sixth, in terms of reform organizations, the government has strengthened the coordination of leading bodies and solved practical problems firmly and effectively.

Key words: target-oriented cotton price system, reform, innovation, Xinjiang Uygur Autonomous Region