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Diane Publishing Books
Cotton Policy in China
Stephen MacDonald (au); Fred Gale (au); James Hansen (au)
This report examines China劌製 2011-2013 attempt to maintain a high level of price support for its cotton producers, analyzing the policy劌製 motivation, its consequences to date, and the impacts of various adjustment alternatives China might pursue. With China劌製 wages rising rapidly in recent years, cotton production costs there have been rising faster than in the rest of the world. Rising costs both helped motivate China劌製 policymakers to strengthen their price support for cotton production in 2011 and ensured that the policy ultimately proved unsustainable. China in 2014 began switching producer support to direct subsidies, and focusing support on producers in the largest producing region, Xinjiang. China劌製 large role in world cotton markets and the unprecedented size of the government劌製 stocks mean that difficult choices lie ahead for China劌製 policymakers. Lower Chinese import quotas for cotton could reduce world cotton prices significantly. Figures and tables. This is a print on demand report.
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