The pilot program of subsidizing cotton growers in Xinjiang when cotton price drops to below the target price set by the government is highly welcomed by farmers in Xinjiang, an official with the National Development and Reform Commission (NDRC) said on Wednesday.
In the meantime, a similar pilot program on soybean is proceeding in northeastern provinces and Inner Mongolia of China, which helps to improve the policy gradually, said Xu Kunlin, head of the Price Department under the NDRC, at a news conference.
The Chinese government has set target price for cotton and soybean in some areas on an experimental basis, under which the farmers can obtain basic profits from planting the two agricultural products. When the market price falls below the target price, the government will subsidize local farmers, while when the market price is above the target price, the government won't.
The prices of agricultural products in China are now all formed by the market completely, without any one set by the government, while the government also takes various measures to keep a stable agricultural production and protect farmers' enthusiasm for production and improve their incomes, Xu underlined.