Cotton Policy Inventory Of Major Cotton Producing Countries In The World

< p > strong > USA: production subsidies and sales subsidies < /strong > /p >

< p > according to the OECD estimates, the annual subsidy to the farmers of the US government is about $40 billion, and the average US $100 per US $100 of the agricultural output value comes from government subsidies, which includes subsidies for < a href= "//www.sjfzxm.com/news/index_c.asp > cotton planting < /a >.

< /p >

For a long time, the U.S. government has adopted a variety of subsidies to its domestic cotton farmers, including production subsidies, sales subsidies and export subsidies that have been used but have been cancelled.

Among them, production subsidies and sales subsidies are for cotton farmers.

The adjustment of production subsidies and sales subsidies will directly affect the planting area of cotton in the United States.

< /p >

< p > production subsidy < /p >

< p > cotton production subsidies in the United States include direct subsidies and counter cyclical subsidies.

In 2002, the agricultural bill established a fixed direct subsidy system for cotton farmers, which is not linked to the production and prices of agricultural products. The government determined the area and yield basis of the crops in advance for the farmers willing to participate in the plan, and fixed a direct subsidy rate for each subsidized commodity to calculate the direct subsidy to farmers. The direct subsidy for cotton was 6.67 cents / pound.

Counter cyclical subsidy is a production protective subsidy initiated when the effective price is lower than the target price, and the target price is the minimum protective price stipulated in the agricultural bill.

When the actual price of agricultural products is lower than the target price set by the government, the government provides countercyclical subsidies to farmers.

The specific payment time is that the farmers can get the upper limit of 35% of the planned payment in October after harvest. They will be paid no more than 70% of the payment in February of next year, and will settle accounts after the 12 months' marketing and pportation.

According to the current US agriculture act, from 2008 to 2012, the annual subsidy amount of US cotton amounted to more than 10 billion US dollars, of which direct subsidies amounted to US $611 million, and countercyclical subsidies and market loans averaged 465 million US dollars and US $11 million 600 thousand respectively.

< /p >

< p > Sales subsidy < /p >

< p > Sales subsidy is mainly market aid loan, which is realized through the difference between market price and loan rate.

According to the 2002 agriculture act, cotton is included in the "subsidized commodities" covered by the commodity subsidy clause. The government provides "loan differential subsidy" to the government, that is to say, the "loan price" is used in advance (using the US dollar / bushels as the unit of measurement, which is equivalent to the "minimum protection price" set by the government for farmers, which means the amount of loans that each unit of agricultural products can be secured from the state).

< /p >

< p > the farm owners who participated in the government support plan will store the processed lint in the warehouses identified by the government as collateral. According to the "loan price" stipulated by the government (51.92 cents / pound, equivalent to 453.33 yuan / load), apply to Agricultural Credit Corporation for mortgage non recourse loan, that is, CCC loan, with a term of 9 months, and the statutory interest rate shall be 5.5%.

The application for CCC loan is closed to May 31st every year.

If the market price is higher than the government's CCC loan price, cotton growers can sell and return the loan principal and interest in the market. If the market price is lower than the loan price, the cotton grower can give the cotton to the Commodity Credit Corp to deal with, give up its ownership, and do not have to repay the loan fund.

< /p >

< p > during the implementation of this policy, the market price is often lower than the loan price for a long time, resulting in a large backlog of Commodity Credit Corp stock.

In order to solve this contradiction, the government adopted a disguised measure, that is, when the market price is lower than the loan price, the cotton growers are encouraged to continue to sell in the market. For the part where the market price is lower than the loan price, the difference is subsidized by the government, which is called "loan differential subsidy".

The "loan differential subsidy" effectively fills the gap between the price of agricultural products in the US and the actual price in the international market, and becomes a basic subsidy measure for the US government to agriculture. < /p >

< p > < strong > India: minimum supporting price policy < /strong > < /p >

< p > India is one of the world's major "a href=" //www.sjfzxm.com/news/ "cotton producing countries < /a >, which mainly provides subsidies through the implementation of the minimum supporting price policy, which is very similar to the protective price purchase policy adopted by China.

The government of India determines the minimum supporting prices of the states according to the recommendations of the Committee on agricultural cost and price.

When the market price is lower than the minimum supporting price, the India Cotton Corp will have to make a protective buyout according to the lowest supporting price announced.

In addition, the India government has provided assistance to cotton growers through subsidizing cotton development projects, providing improved varieties and unified pest management.

< /p >

< p > < strong > Uzbekistan: implement the policy of unified purchase and marketing, < /strong > /p >

< p > Uzbekistan is the largest cotton producing and exporting country in Central Asia, exporting nearly 1 million tons of cotton per year.

At present, Uzbekistan cotton implements the policy of unified purchase and marketing. Only three state-owned companies can acquire and sell cotton from the ginning plant and make unified pricing by the state.

< /p >

< p > the acquisition and processing of cotton in Uzbekistan mainly consists of the acquisition and processing of cotton processing plants by the Uzbek Cotton Industry Association (the former cotton Department). The processing plant is only responsible for processing cotton and not participating in the operation.

In warehousing, the Uzbekistan cotton storage company is responsible for the storage and pportation management of cotton throughout the country.

The cotton produced in different states is centralized and centralized to the national cotton banks of various states, and the right of goods belongs to the cotton bureaus of various states.

In terms of trade, the Uzbek cotton is centralized to the national cotton warehouse of various states and is allocated by the state.

< /p >

< p > < strong > Brazil: loan and minimum protection price < /strong > /p >

< p > Brazil is Latin America's largest "a href=" //www.sjfzxm.com "cotton producing country < /a >.

The main purpose is to take loans and set minimum protective prices.

Cotton farmers first reported to the bank how much cotton they would grow in that year. The government's lowest price multiplied by the area reported by cotton growers was the amount of loans.

< /p >

< p > the government stipulates that if the market price is higher than the loan support price after the output of cotton, the cotton farmers can only repay the loan.

On the contrary, cotton farmers give the cotton to the government without paying back the loan.

In addition, the government also requires banks to invest a certain amount of money in agriculture every year, including a href= "//www.sjfzxm.com" > cotton < /a >.

This fund will mainly be used for the production, processing and export of cotton.

< /p >