China has decided to pay a subsidy of CNY 2,000 per ton of cotton harvested in the cotton year of 2014/15 to farmers in nine major cotton-growing provinces including Shandong, Hubei, Hunan, Hebei, Jiangsu, Anhui, Henan, Jiangxi and Gansu. In the following years, the subsidies will be calculated based on 60% of the target price subsidies provided to Xinjiang, the largest cotton growing region in China, but the roof of the subsidies is CNY 2,000/ton.

Based on the production figures of nine cotton-growing provinces provided by the National Bureau of Statistics, the central finance will allocate the money to these provinces and each province will work out practical subsidy scheme according to production or planting area.

Source: China Textile Leader Express