CCA: China should subsidize growers to stabilize cotton acreage

CCA: China should subsidize growers to stabilize cotton acreage

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BEIJING, Dec. 8, 2010 (Xinhua News Agency) -- About 16.8 percent of the cotton growers in China's major producing areas intend to continue cutting their cotton planting area, results of a survey on 2011 cotton growing interest conducted by the China Cotton Association (CCA) show.

The survey results also indicate that nearly 10 percent of the growers hold wait and see attitude for next year's production.

The association suggests that the government should roll out subsidy policies for cotton production as soon as possible in a bid to raise farmers' interest in planting and ensure market supply.

As snowstorm caused sharp fall of cotton output in China this year, farmers suffered significant losses despite price rise, which has dampened their enthusiasm for cotton production.

Currently, the earnings for cotton production in China are 1,300 to 1,400 yuan/mu (one hectare equals 15 mu), lower than the more than 2,000 yuan/mu for growing wheat or corn. Furthermore, the government grants at least 100 yuan/mu of subsidy for grain production.

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