China's cotton planting area is expected to reach 2.8 million ha in 2016, down 7 percent from the previous year, according to results of a survey conducted by the China Cotton Association. The survey was made on planting intention of 3,000 farmers in 12 major production provinces and regions.
Although Xinjiang Uygur Autonomous Region, the biggest cotton production base in China, will continue to implement the target price policy in the crop year of 2015-2016, price decline and slack demand have dampened cotton farmers' confidence and affected their planting intention, said the association.
In the future, market trend of cotton and other farm products as well as execution of subsidy policies will be major factors affecting cotton planting area. The region started to pilot a target price mechanism for cotton production in 2014. Under the mechanism, the government will give subsidies directly to farmers if market prices drop below the target price.
Latest comments