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By Qin Zhongchun, Li Qing & Ning Xia, Research Team on “Agricultural Strategic Adjustment in the Course of Further Opening-up”, Research Department of Rural Economy, DRC

Research Report, No. 72, 2020 (Total 5816) 2020-4-2

Abstract: Three aspects need to be emphasized to deepen the reform of China’s policy on cotton growing in the new era. In terms of the reform approach, it is necessary to strike a balance between developing strong points and enforcing weak links. The market, subsidy and regulatory mechanism need to work within a sound and stable policy framework. In terms of the reform focus, the priorities need to be put on raising efficiency and promoting a high-quality-based fair and green development. Reforms need to be pushed ahead by category and prominent issues need to be addressed in an orderly manner. In terms of the reform measures, we need to flesh out the policy implementation and enhance the coordination between different leading agencies, aiming at achieving gratifying results in addressing issues by the government. To improve the innovation-oriented policy on cotton growing, the following policy options are made. First, the cotton market operational system needs to be followed and perfected so as to enable the market to play a decisive role in resources allocation and ensure the efficient players to become bigger and stronger. Second, the subsidy system for the sales of cotton and for supporting cotton growing regions needs to be innovated and optimized. It is essential to explore a new subsidy system for stabilizing the target price of cotton and for the green development of cotton growing regions. Third, relevant regulatory and control systems pertaining to cotton planting, trade and storage need to be refined, so as to advance the collaborated development between the upstream and downstream sectors of the cotton industrial chain. And fourth, we need to promote the consistency of national cotton policies, and the experience of policy reform measures on cotton growing in Xinjiang can be shared with other major cotton growing areas of China.

Key words: cotton policy, deepen reform, basic approach, policy options