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Subsidies on cotton cultivation needed to stabilize cotton acreage
Dec '10
A recently conducted survey by the China Cotton Association (CCA) regarding the cotton growers' interest in crop cultivation for 2011 reveal that, around 16.8 percent of the cotton cultivators in the country's main cotton cultivation regions are planning to cut down their cotton cultivation acreage.

It also revealed that, around 10 percent of these crop cultivators adopt a wait and watch policy with regard to next year's cultivation.

CCA has recommended that in order to raise the cultivator's interest in crop cultivation and to ensure adequate supply of the crop in the market, the government should come out with some financial assistance package for cotton cultivation.

The country's cotton crop production was severely affected by the severe snowstorm that hit the country this year, and even caused the crop cultivators to bear heavy losses in spite of the rise in commodity price. This has lowered the zeal of the cultivators to take up the crop next year.

Cotton cultivation in the country right now generates a revenue of around 1,300 to 1,400 Yuan per mu (one hectare equals 15 mu), which is far below the revenues worth 2,000 Yuan per mu from wheat or corn cultivation. Moreover, the government also extends financial assistance of at least 100 Yuan per mu for cultivating these crops.

Fibre2fashion News Desk - India

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