China: Cotton Subsidy Policy Updated

On April 14, 2023, the National Development Reform Commission (NDRC) published Announcement No. 369 on Implementation Measures for Improving the Target Price Policy for Cotton. The announcement maintained the target price for Xinjiang cotton at 18,600 yuan/metric ton (MT) for the period 2023 to 2025, and includes a provision allowing the State Council to make adjustments in the case of “major changes in the cotton market.” The announcement updated the volume of Xinjiang cotton entitled to subsidy, lowering the maximum eligible volume from 5.4 million metric tons (MMT) to 5.1 MMT, based on factors including Xinjiang’s land and water resources. This report contains background on PRC cotton subsidy policies and a preliminary analysis and unofficial translation of the NDRC announcement.

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