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

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Certification for Philippine garment firms availing GSP

Textiles | On 20th Jun 2018

Certification for Philippine garment firms availing GSP

The Philippines has adopted rules on securing certificate of...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search