ChinaΆs National Development and Reform Commission (NDRC) has kept its target price for cotton in Xinjiang region unchanged from last yearΆs price of 18,600 yuan ($2,965) a tonne. The target price will now be set every three years instead of annually. However, the state planner can adjust the target price if there are major changes in the cotton market.

The decision to keep target price constant for the next three years in the countryΆs top cotton growing region has been made to curb high fluctuation in cotton output from year to year, the government said.

In 2014, the Chinese government had launched a three-year trial to set target prices for cotton grown in Xinjiang. This has improved both the quality and competitiveness of ChinaΆs cotton, according to the government.

Farmers in Xinjiang, which now accounts for over 65 per cent of all China cotton, are entitled to higher subsidies than growers in other regions. But over the next three years, these farmers will be eligible for subsidy only if output is less than 85 per cent of the average national annual production during three-year period from 2012-2014. (RKS)