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By Ye Xingqing & Ning Xia, Research Team on the Development of Xinjiang Uygur Autonomous Region, DRC

Research Report, No. 34, 2020 (Total 5778) 2020-3-12

Abstract: The second round of pilot practice of cotton target-oriented price reform in Xinjiang Uygur Autonomous Region is coming to an end. In 2020, the future performance of cotton price reform has drawn close concern from Xinjiang officials and people and aroused high concern from the international community. The new round of cotton target-oriented price reform needs to be consistent with the general direction of formulating a new agricultural subsidy policy system, building a new system of higher level open economy, WTO agricultural reform, and maintaining social stability in Xinjiang, so as to protect the interests of cotton farmers by preventing the price from plummeting and better promote the supply-side structural reform of Xinjiang agriculture. A new round of cotton target-oriented price reform needs to be carried out according to the general principle of "stabilizing the framework while setting the targets, verifying the total amount while adjusting the allocation and clarifying the subsidy functions in light of local conditions". The total amount of subsidies earmarked by the Central Government for Xinjiang needs to be reasonably determined so as to establish the cotton industry fund, and fix the annual priorities of the fund use according to the market performance. In order to bring into full play of the Blue Box policy, measures to ensure income need to be reasonably designed. And in order to make full use of the Green Box policy, measures to ensure production capacity need to be carefully planned.

Key words: target-oriented price reform, cotton, Xinjiang