| Xinjiang Province is the important cotton belt in China. There are 63 counties planting cotton among total 86 in Xinjiang, cotton is one of the most important crops in this area. About 60% of agricultural income consists of cotton revenue. From the 1991 to the 2006, Xinjiang had supplied 21 million tons of cotton for the domestic market, which builds the steady foundation for the textile industry development.Recently, textile industry developed quickly, which results in the unbalance between the demand and supply of cotton. Cotton supply is less than cotton demand. For this reason, China is importing cotton from outside for fill in the domestic cotton market gap, which directly result in the much inexpensive cotton swarm into domestic market, and caused declining peasant's income, expanding risk, and reduced production capability r. Xinjiang cotton belt is the largest cotton one in China, whose influence is the deepest among all cotton belts. As the cotton is the important resource of peasant income, the lower cotton price results in lower peasant income, which is not beneficial to the development of agriculture, the improvement of plant technology and peasant living and income level.From research, cotton price affected the peasant income. Peasant income will fluctuate with the change of cotton price. Because the income of peasant is not promising, the investment to cotton will decrease, and then all these will limit the agriculture development speed. Now the investment to cotton is little, the cotton output, quality, and plant level are not guaranteed. The cotton nick will be enlarged, which not profitable to the local cotton market. |