Xinjiang Cotton Target Price Fixed at RMB 18,600/T

According to the Notice on the Cotton Target Price Policy for 2026-2028 (NDRC Price Document No. [2026] 733) issued by China's National Development and Reform Commission, the Xinjiang cotton target price will be RMB 18,600 per tonne for 2026-2028, with the target price level and fixed subsidy output kept stable.

The notice states that the target price is determined on the principle of production cost plus reasonable profit, taking into account the needs of cotton industry development, market supply and demand, and fiscal affordability. If major changes occur in the cotton market, the target price may be adjusted in a timely manner after approval by the State Council. Meanwhile, taking into account recent cotton production in Xinjiang and local water and land resources, subsidies will be provided on a fixed output basis.

The continuity and stability of the policy help stabilize growers' planting expectations and secure domestic cotton supply. For downstream spinning and weaving companies, raw material cost expectations also become clearer, supporting more rational procurement and inventory planning. Xinjiang produced about 5.69 million tonnes of cotton in 2024, accounting for 92.3% of the national total. (Source: National Development and Reform Commission)