BEIJING (DTN) -- Chinese cotton farmers will face a different marketing environment after harvest starts later this month.
The Chinese government's floor price purchasing program contributed to a mountainous stockpile -- almost twice annual consumption including the upcoming harvest. So this year, the government is switching to a target-price subsidy program and will pay farmers cash instead of buying more cotton.
"The cotton stockpile had increased a lot as government had to buy cotton at a higher price for the last three years," said Ruiping Li, vice president of Changshan Textile Co.
According to a recent survey, the state reserve ...