China sets target price for cotton for 2014 at 19,800 yuan/tonne
April 9, 2014
(Xinhua News Agency)
– Chinese authorities have set the target price of cotton for 2014 at 19,800 yuan/ metric ton (tonne), according to a joint announcement by the National Development and Reform Commission (NDRC), the Ministry of Finance (MOF) and the Ministry of Agriculture (MOA).
Earlier, in January, the country said it would pilot a target price mechanism for cotton this year.
Under the target price mechanism, the government will give subsidies to farmers if market prices fail to reach the target price, based on acreage under cultivation, yield per mu (15 mu equal one hectare), and price difference between the target price and market price.