The vice minister of Agriculture Ministry Mr. Fan Xiaojian put forward the following on the symposium of reform and development of rural areas in China held in Nanning of Guangxi on July 29th, in view of the current problems that cotton price will drop at good harvest year and farmers are difficult to sell cotton in some cotton planting areas, he suggests that the government should issue the lowest cotton purchase price protection policy as soon as possible to guarantee the healthy and stable development of the whole industry.
The largest cotton exporting country in the world is the US, which has a set of complete cotton purchase price protection policy, i.e. according to production cost to determine the lowest price and basic price of cotton, when the market price is higher than this price standard, the cotton farmer can freely sell the cotton; if market price is lower than this standard, the government will be responsible to purchase the cotton according to such a basic price.
Mr. Fan Xiaojian suggests that China should also issue the cotton purchase price protection policy as soon as possible refer to the protective purchase policies for rice and wheat that have been established to protect the benefits of cotton farmer to a greatest extent, so as to guarantee the healthy and stable development of the entire industry.
