China will pilot target price mechanism for soybeans in northeast part of country, Inner Mongolia, official says; country will also pilot price mechanism for cotton in Xinjiang Uygur

BEIJING , January 23, 2014 () – China will pilot a target price mechanism for soybeans in Northeast China and the Inner Mongolia Autonomous Region, and for cotton in Xinjiang Uygur Autonomous Region this year, said Chen Xiwen, deputy director of the Central Agricultural Work Leading Team, a top decision-making body for agriculture-related work, at a press conference on Wednesday.

Under the target price mechanism, the government will give subsidies to farmers if market prices fail to reach the target price.

Chen disclosed that the country plans to launch the pilot program only for cotton and soybeans this year, and will continue to implement stockpiling policies for wheat, rice, rapeseed and sugar crops. It indicates China will steadily push forward market-oriented pricing for crops to create a balance between market efficiency and farmers' interest.

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