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Qin Zhong Chun: Experience Of Promoting Cotton Target Price Reform In Xinjiang

2020/6/5 23:14:00 0

XinjiangCottonTargetPriceReformExperience

Xinjiang promotes cotton Target price Experience of reform

In June 4th, the China think tank public number published the article "Xinjiang's experience in promoting cotton target price reform -- exclusive interview with Qin Zhongchun, a two level inspector and researcher of the Ministry of rural economy research of the State Council Development Research Center. The article points out that the reform method is scientific, the reform operation is advanced, and the reform organization is favorable. It is an important factor to ensure the success of the cotton target price reform in Xinjiang. The national cotton trading market is entrusted by Xinjiang to supervise the professional warehousing of the cotton supervised by Xinjiang, cooperate with the inspection institutions to organize the inspection of the notarization, and take charge of the construction of the information platform for the cotton target price reform in Xinjiang. Daily operation and maintenance has made important contributions to the reform.

The full text is hereby published as follows:

Since 2014, China has chosen Xinjiang to carry out the pilot reform of cotton target price policy. After several years of practice, the cotton target price reform basically achieved the national goal, accumulated experience for the price reform of China's major agricultural products, and explored a new way to decouple the price of agricultural products from the market supply and demand, the price and the government subsidies, and realized the strategic adjustment of the layout of the cotton production in the whole country, which led to the development of the whole industrial chain of cotton production, processing, circulation and textile industry. The domestic cotton quality and market competitiveness have been upgraded, providing a typical sample for the structural reform of agricultural supply side. This is a major public policy reform experiment conducted by our country under the new stage and new normal situation. It has drawn lessons from past lessons of cotton reform, Northeast soybean reform and other cotton region reform, and has created important experience, and its success has not come easily. It is particularly important to deeply analyze this reform's experience in direction, content, method, operation and organization. For this reason, the State Research Network interviewed Qin Zhongchun, a two level inspector and researcher of the Rural Economic Research Department of the State Council Development Research Center.

National Research Network: In order to stabilize cotton production, China has constantly improved the cotton price mechanism and adjusted the cotton market for many times. Since 2014, the cotton target price reform implemented in Xinjiang has promoted the international competitiveness of China's cotton prices and improved the cotton price formation mechanism. What do you think is the primary factor and experience of its reform?

Qin Chun Chun: The correct direction of reform is the primary factor determining the effectiveness of reform. In the reform of cotton target price in Xinjiang, the first important experience is to deal with the relationship between the government and the market in the direction of reform, improve the cotton price formation mechanism, provide support and create conditions for the price mechanism to play a full and reasonable role, so that the market can play a decisive role in the allocation of resources and play a better role in the government. The specific measures are to improve the top-level design of policies, promote the separation of prices and subsidies, liberalize production and marketing prices, strengthen the construction of market-oriented system, and improve the pricing mechanism of cotton. Because cotton is a major agricultural product, price changes are complex and diverse, which are related to and affected by domestic supply and demand, international market, cotton varieties, quality, grade, trading time and trading objects. The rationality of prices is not absolute, but relative, and varies with market, time and space, people, cotton and so on.

During the reform, the state completely abolished the temporary cotton purchase and storage policy. At the same time, it paid attention to improving and perfecting the cotton market system. After the reform, the price of cotton has been fully sensitively activated, and the market has been activated, so that the situation of cotton production and marketing in China has changed significantly. The content of Xinjiang's cotton target price reform is relatively complicated, but the reform idea is clear and simple. The core is to deal well with the relationship between the government and the market, and implement the market's return to the market and the government's return to the government. It has drawn profound lessons from previous reforms, especially in comparison with the temporary cotton purchase and storage reform in the past, and solved the problem of unreasonable price signals. It also carried out the spirit of the party in the third Plenary Session of the 18th CPC Central Committee and embodied Xi Jinping's socialist economic thoughts with Chinese characteristics in the new era, laying the foundation for the success of the whole reform.

National Research Network: What major reform contents are involved in the cotton target price reform in Xinjiang? What kind of successful experience can we conclude from this?

Qin Chun Chun: The rational content of reform is the core factor that determines the effectiveness of reform. Another important experience in the reform of cotton target price in Xinjiang is to protect the interests of the actual cotton producers in the reform content, to establish new subsidies, to rationally define and respect differences, to strictly define losses, to make comprehensive compensation and to supplement directly to households. The essence of this subsidy is a cyclical market loss subsidy, which is related to the overall price operation on the macro level, but it has nothing to do with the actual price of seed cotton sold on the microcosmic level. The specific approach is to introduce reasonable conditions and make direct subsidy by the central government. The State adopts macro subsidies and differential subsidies, and provides subsidies to eligible cotton growers according to the way of subsidization, such as the volume of sale and the area and quality. The subsidy is limited or limited, and the combination of pre allocation and liquidation is necessary. After carrying out this reform, although the whole system does not have the form of insurance system, it actually has the content or effect of the policy insurance system. This policy design is innovative, not only different from China's past agricultural product regulation system, but also different from China's past agricultural subsidy system. It is not only a special policy oriented agricultural subsidy system, but also a system arrangement to promote stable development and scientific development of cotton production, ensure stable supply and efficient supply of cotton market by taking state subsidy as an opportunity.

In the reform, the central government calculated the cotton target price subsidy in Xinjiang as a whole. According to the difference between the annual target price and the monitoring price and the cotton production statistics in Xinjiang, the total amount of subsidies in Xinjiang was approved according to the central budget and the WTO rules. A special reporting, verification and statistical system for cotton planting area, sales volume and quality will be established, which will be linked to the total amount of the central government subsidies, and be accounted for and sold to the households on the microscopic level according to the volume, quality and so on. First, it is reasonable to identify the cotton farmers to share the cyclical market losses and ensure the basic income of cotton production. The target of subsidies is the actual cotton growers who meet specific conditions, including basic farmers and agricultural production and operation units. Two, we should respect differences. We should scientifically classify and classify the objects that lose the cotton market. We should distinguish between the autonomous region and the Corps. We should distinguish between the basic farmers and the agricultural production and management units, the four prefectures and other regions in the southern Xinjiang Autonomous Region, and comprehensively consider the legitimate interests of different groups. Three, we must strictly define losses, strengthen cooperation between departments and regions, strengthen the monitoring of cotton market prices and cotton production links, standardize the management of acquisition links, and introduce the ticket management system. We should take strict measures to define the cyclical market losses of cotton and to provide subsidies for the actual cotton producers from the macro level. The four is the comprehensive compensation, considering various constraints, and considering the subsidy for cotton farmers.

National Research Network: What are the ways of the cotton target price reform in Xinjiang? What is the difference between the soybean reform in the northeast and the Northeast before?

Qin Chun Chun: The key to the effectiveness of reform is the science of reform. Xinjiang's cotton target price reform follows the reform methodology of "putting the tube into service" to improve the social governance capability of the government. The specific approach is to promote the combination of discharge and management, start from the source, establish a system of legislation, clarify responsibilities and responsibilities, carry out production and marketing supervision, diversify risks, establish a ticketing system, implement linkage supervision, prevent and control "spinning cotton" and other behaviors, and also promote the actual cotton growers to attach importance to market volatility risks and raise the level of production development. On the one hand, we have done a good job in designing the core policy, cancelled the temporary cotton purchase and storage policy, and carefully designed and carefully arranged the price system, subsidized objects, subsidy conditions, subsidy methods and subsidy control. On the other hand, we should transform the functions of the government, optimize the government services, strengthen the supervision afterwards, strengthen the guidance of cotton production from the source, advance the structural adjustment of secondary and low yield cotton areas, strengthen the supervision of cotton circulation construction, establish the system of public inspection and warehousing supervision, and promote the transformation and upgrading of industrial development. After such a practice, the system is designed in a more detailed, comprehensive, reasonable and standardized way. The contents of the system are open, fair and impartial, and the whole system runs smoothly and steadily.

In the process of reform, Xinjiang started from the source of production and marketing to supervise and link up with sales, linking farmers' cotton planting information, seed cotton sale information and tax tickets of processing enterprises, etc., as evidence for selling agricultural products sales invoices, cotton planting area information and planting certificates, and strengthening the management of cotton production and purchase and marketing, recognizing the qualification of processing enterprises, unifying cotton purchase invoices, and strengthening cotton. Warehousing management, promoting professional warehousing services, unifying cotton quality inspection, establishing ticket system and financial direct subsidy system, implementing whole process monitoring, greatly improving the ability of government administration and control, and ensuring the safety, timely and accurate payment of subsidized funds. The agricultural departments at all levels should take the lead in strengthening the guidance for cotton production, advance the structural adjustment of secondary and low yield cotton areas, and verify the cotton planting area to ensure the accuracy and accuracy of the data. The quality control of cotton is strongly supervised by the fiber inspection institution. The lint yield of processing enterprises is regularly checked and compared with the converted seed cotton, and the cotton processing enterprises are inspected by the relevant departments at irregular intervals. The development and reform departments should strengthen the monitoring of cotton prices, implement specialized centralized price collection, assist in determining the level of cyclical market losses, and take the lead in carrying out the evaluation of publicity and integrity management of cotton processing enterprises, establish a cotton inspection system in Xinjiang, and thoroughly investigate and punish the illegal activities such as "turning around cotton" and making false invoices. The financial department will lead the establishment of the subsidy fund management system, accurately calculate the subsidy standard, and implement direct subsidy to households. The leading group of cotton target price reform in the autonomous region has taken the lead in establishing a linkage mechanism between management departments and law enforcement agencies, corps and local authorities, and resolutely combating illegal activities such as false Invoicing, subsidization, cotton spinning and illegal reclamation. These practices are quite different from the reform of Northeast soybean, which is an important source of the success of Xinjiang's reform and the failure of Northeast China's reform.

National Research Network: In addition, do you think that Xinjiang's cotton target price reform has any specific operation as its main success?

Qin Chun Chun: Reform and advanced operation are important factors that determine the effectiveness of reform. Xinjiang cotton target price reform, continue to do a good job in technical support, develop and use modern information technology to upgrade public management and service levels, establish and improve information platform, standardize and register cotton production, processing, purchase and sale, circulation and taxation data, establish a cotton information and data sharing platform, and continuously accumulate large data in the industry. The specific measures include strengthening the construction of information network and basic data, organizing multi sectoral agencies to participate and cooperate closely, and docking with the national cotton trading market and the national tax system. The national cotton trading market will lead the extension of its information network to the cotton production link, and the agricultural sector will help to establish and perfect cotton planting information, and the cotton inspection institution will help to establish and improve cotton planting information. Notarization and professional warehousing information, led by the fiscal and taxation system, will link the agricultural product purchase invoice management information network with the information system of the national cotton trading market and the information system of the inspection institutions. This work is of great significance. It enables the reform operation to have the characteristics of the times and the advancement, improve the work efficiency, reduce the operation cost, guard against moral hazard, promote the establishment of links and joint cooperation between the upper and lower reaches of the cotton industry, and help the government to improve the ability of administrative control.

During the reform, this work began brewing in 2014, and was officially launched and completed in 2015. All kinds of bills, certificates and forms of cotton enterprises and individuals in 2014 were all manually operated with heavy workload and high error rate. Since 2015, the cotton information platform in Xinjiang has been set up to achieve a single entry and share or use all links. It has basically solved the problem of distorted data of Xinjiang's arable land area, cotton planting area, cotton yield and cotton quality for a number of reasons, reducing the workload of checking bills and statistical data in various links, reducing the error rate and the difficulty of supervision and inspection. To ensure that the growers and planting areas are not heavy or leaky, it is also convenient for statistical verification, comparison and early warning of all links. First, farmers input information data such as cotton area and so on. The basic farmers and agricultural production and operation units will timely declare according to the regulations. After three levels of verification and verification by the agricultural sector, the cotton growers' information, statistical accounts and cotton planting certification will be formed, and the information will enter the national cotton trading market information system. The two is the information input of farmers' seed cotton sale and cotton quality. When the cotton mill is buying seed cotton, it should inquire about cotton growers' information from the information system, and issue the purchase invoices and bills for farmers. These invoices and bills are important basis for farmers to apply for subsidies, and form unified standardized barcode and information, and the relevant information is automatically entered into the national tax information system. And the national cotton trading market information system. If there is no information of cotton growers in the information system, the ginning factory shall not issue invoices for them, and farmers will not be able to apply for subsidies. Three is cotton notarization inspection and professional warehousing information data entry, fiber inspection institutions and professional warehousing units for cotton mill inspection and warehousing of cotton quality inspection, implementation of packet inspection, information related to automatic entry of national fiber inspection information system and national cotton trading market information system. The information platform has been put into operation for more than three years, providing real and effective data support for the reform. It has realized the cotton industry big data from the whole process of cotton production, acquisition, processing, warehousing, storage and warehousing, and laid a solid foundation for the next step in serving the national cotton macro-control and serving the development of the industry. Taiwan has laid a solid foundation.

National Research Network: The cotton target price reform in Xinjiang was implemented in 2014 and deepened in 2017. What policy adjustments have been made in the process and what changes have taken place?

Qin Chun Chun: Reform, adjustment and innovation are the relevant factors that determine the effectiveness of the reform. The policy cycle is introduced into the cotton target price reform in Xinjiang, and dynamic optimization mechanism is established. The specific approach is to introduce time control, implement dynamic optimization of the reform pilot process, adhere to the top-level design and combine the "crossing the river by feeling the stones", and constantly improve the details of policy operation. So far, two rounds of reform have been carried out. The 2014-2016 year is the first round of reform, and the 2017-2019 is the second round of reform. No matter in the determination of cotton target price level and the macro subsidy accounting, or in the production and marketing supervision and the micro subsidy plan, and in the way of payment of the subsidy funds, they are constantly fine-tuning and perfecting. After adopting this measure, this policy formulation tends to be basically the same as the agricultural policy formulation in developed countries and the requirements of the WTO rules.

In the reform, the cotton target price level and the specific ways and procedures for farmers' subsidies were fine tuned for 2014-2016 years. The target price level of cotton in 2017-2019 years has been unchanged for three years. The state has imposed quota management on the total annual subsidy of cotton target prices in Xinjiang, and has shifted from the "yellow box" measure to the "blue box" measure. First, the total price of cotton and the total amount of state subsidies have changed. In the 2014-2019 year, the target price of cotton in Xinjiang decreased first and then stabilized. The first three years were 19800 yuan, 19100 yuan and 18600 yuan per ton, respectively, and 18600 yuan per ton in the latter three years. Two, we should continue to improve production and marketing supervision and subsidies to farmers. In 2014, the information platform was not established, and the production and marketing supervision was complex and inefficient. The autonomous region mainly adopted the subsidy method of "area + sales volume". Two counties in Akesu also adopted the subsidy method of separate area subsidies and the subsidy method based on the sales volume separately, while all Corps were subsidized by the sales volume. Since 2015, the autonomous region has set up an information platform and put it into operation. The production and marketing supervision has been simplified and highly effective. The subsidy payment method has been adjusted to 90% of the total subsidy amount for the payment of the actual sales volume of the farmers in Xinjiang, and 10% is used to pay the subsidy to the basic farmers in four prefectures in southern Xinjiang. Since 2017, the autonomous region has launched a pilot project linking subsidies to quality. Three, the number of subsidy payments has decreased. In 2014, the subsidy fund plan was paid to cotton planting households in three times. In fact, it was paid four times in cash, and two times after 2015.

National Research Network: In addition to all the above factors and experiences, do you think there are other factors in the success of Xinjiang's cotton target price reform?

Qin Chun Chun: The strong organizational reform is the guarantee factor for the effectiveness of reform. Xinjiang's cotton target price reform should be promoted at a high level, and leadership and coordination should be strengthened to solve practical problems. The specific approach is to establish a strong and effective leadership and working body for solving problems. Not only do the central authorities concerned, relevant departments and relevant units work in force to investigate, guide and make decisions, but also the party committees of the the Xinjiang Uygur Autonomous Region Party committee and government, the Xinjiang production and construction Corps, the government of the Party committee, and all sectors of the society and service organizations are all involved. We should strengthen the unified leadership, strict organization and strict management of the target price reform of agricultural products, and ensure the effective operation of the new system.

In the reform, the Central Committee of the party and the State Council put forward the objective and task of solving the problem, and the relevant departments and regions strengthened cooperation to reform the leading organization and management system and mechanism. First, the major decision of Xinjiang's cotton target price reform is decided by the central government. After the reform started, some major decisions were made under the leadership of Comrade Hu Yang, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council. The joint research was carried out by the national development and Reform Commission, the Ministry of finance, the Ministry of agriculture and the National Bureau of statistics. Finally, it was approved by the State Council. Some of the contents were published by the national development and Reform Commission and the Ministry of finance. Two, the Xinjiang Party committee government has taken the lead in solving various specific problems, and has made plans, research, decision-making and promotion work for reform from the perspective of organizational leadership coordination. Since 2014, Xinjiang has set up a leading group of cotton target price reform pilot work in the autonomous region. In the 2014-2017 year, comrade Qian Zhi, vice chairman of the autonomous region, made a very close and complete plan and coordinated the implementation. After 2017, the leaders of the autonomous region continued to make efforts to organize reforms. All departments concerned have made clear policies and norms, and widely publicized to farmers, enterprises and industries. Three, some social institutions actively participate in the reform and play an important role. The national cotton trading market, entrusted by Xinjiang, is responsible for supervising the professional warehousing of Xinjiang's cotton supervision, and coordinating with the inspection institutions to organize the inspection of the notarization of the warehouse. It is responsible for the construction and daily operation and maintenance of the information platform of cotton target price reform in Xinjiang, and has made important contributions to the reform.

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