Abstract
China’s cotton market is affected by the subsidy policy obviously. In different policy background, Chinese cotton market price volatility presents different characteristics, and benefits transfer between cotton producers and consumers showing a clear policy features. This paper analyzes the effect of Chinese cotton subsidies by cotton market price support and consumer single commodity transfers value from 1993 to 2014, and provides an in-depth analysis of Temporary Storage Policies and Target Price Policy. Through the analysis of historical data, this paper can draw the following conclusions: “Unified Purchase and Sale” cotton retractable mechanism would distort the cotton industry chain profit distribution mechanism, target price mechanism is conducive to promoting China’s cotton market reform, China’s cotton production will further concentrated in Xinjiang.
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