Further details have emerged on China's cotton policy reforms, with direct subsidies for farmers being extended to nine new growing regions.

Producers in provinces including Shandong, Hebei, Henan and Jiangsu will now be eligible for a fixed rate subsidy of CNY2,000 per ton in 2014/15.

In future crop years, payments to producers in these areas will be determined as a percentage of the amount allocated under the target price system in Xinjiang, with the maximum possible payment being CNY2,000 per ton.

Earlier this year the government said growers in Xinjiang will be subsidised if the market price for cotton drops below the pre-set benchmark of CNY19,800 per ton.

According to Cotton Incorporated, early reports on the policy's effect suggest payments will be sufficient to prevent a collapse in acres planted outside of Xinjiang in the 2015/16 season.

The Xinjiang regional government in China's north west is also pushing ahead with its planned US$3.2bn package of incentives to attract investment from textile and garment companies, as reported on just-style earlier this month: China's Xinjiang steps up efforts to lure garment companies.