BEIJING, Sept 17 (Reuters) – China, the world’s top consumer of cotton, has issued details of a trial subsidy programme for cotton farmers in Xinjiang that will give them a direct handout if the price of the fibre falls below a target level, according to the China Cotton Association.
Citing a government document, the association said that if cotton prices fall below a target of 19,800 yuan ($3,225) per tonne, farmers will be compensated based on a combination of their acreage size and volume sold to cotton ginners.
China has scrapped a controversial stockpiling programme to support its cotton farmers and will instead pay subsidies direct to growers for the 2014/15 marketing year.