MUMBAI (Commoditiescontrol) - China has set its target price for cotton in 2015 in Xinjiang at 19,100 yuan ($3,080) per tonne compared to 19,800 yuan last year, said the National Development and Reform Commission (NDRC).
The country has lowered its target price in the top grower as it has a huge inventory in warehouses and aims to reduce it before the country ramps up imports again.
The low target price could result in country’s farmers to plant less cotton, market experts said. The lowered target price was expected by market players and showed little impact on domestic futures.
China introduced a new subsidy system for cotton farmers last year under which growers are paid the difference between the target price and the average market price for cotton.
(By Commoditiescontrol Bureau; +91-22-61391533).
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