ANNOUNCEMENT 10 Apr 2014

April 10, 2014 - The Chinese government launched a new regional subsidy scheme.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

PRC National Development and Reform Commission, April 10th, 2014. (发改电[2014]84号 关于发布2014年棉花目标价格的通知)
http://www.ndrc.gov.cn/zwfwzx/zfdj/jggg/201404/t20140415_607183.html

Inception date: 10 Apr 2014 | Removal date: 31 Dec 2016

Price stabilisation

In April 2014, the Chinese National Development and Reform Commission released Fagaidian 2014/84, which announced the official implementation of a 'target price' subsidy scheme for cotton in the western region of Xinjiang.

The target price was set at USD 3,210 (CNY 19,800) per tonne. The subsidy is awarded to farmers who sell their cotton below the agreed target price, making difference. This intervention is classed as amber because the previous subsidies had been awarded based on land, therefore making it difficult to objectively compare the change.

Xinjiang, also known as East Turkestan, is the largest cotton-producing region in the PRC.

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