Home / Knowledge / News / Textiles / Cotton subsidy may affect enthusiasm of farmers in China
Cotton subsidy may affect enthusiasm of farmers in China
27
Feb '14
The implementation of cotton subsidies by the Chinese Government in place of the temporary purchase and storage policy may mar the enthusiasm of farmers towards growing cotton, according to experts.
 
The Chinese Government has already started implementing a subsidy of 380 yuan per mu (1 mu = 0.067 hectares) on a pilot basis in the main cotton growing region of Xinjiang.
 
After the implementation of the national subsidy policy, the price of cotton will be market-driven, theoretically breaking the past policy of temporary purchase and storage. This is expected to significantly bring down spot cotton market prices, and ease the problem of high raw material prices faced by the domestic textile industry.
 
At present, the international cotton market is oversupplied, and with China’s implementation of cotton subsidies, the difference in the prices of domestic and imported cotton would reduce, thus enhancing the international competitiveness of the Chinese domestic textile enterprises.
 
However, there is also a downside to the cotton subsidy policy, as it may affect the enthusiasm of cotton farmers towards growing the crop. During the years of implementation of the State Reserve Cotton policy, farmers received price of around 7 yuan/kg, and majority of them earned well. But, with the implementation of the subsidy policy, cotton growers would worry about the decline in cotton prices, which may result in loss as well.
 
Actually, the purchase price of cotton plays a decisive role in growing the crop. The cost of growing cotton includes the increasing cost of labour, seeds, fertilizer, irrigation, machinery, etc. which cannot be avoided. Added to this, there is problem of cotton yields. After three or four successful years of growing cotton, fields face serious pest attack. While the average yield is about 330 kg/mu, there are several fields where the yield is around 100 kg/mu.
 
Currently, the cost of growing cotton works out to about 2,000 yuan/mu, and the subsidy of 380 yuan/mu can only meet a limited burden.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search