Decision No. 168/1999/QD-TTg On Certain Policies to Encourage the Development of Cotton Production

 Pursuant to …;

On certain policies to encourage the development of cotton production

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

At the proposal of the Minister of Agriculture and Rural Development and the Minister of Industry,

DECISION:

Article 1. The State encourages organizations and individuals from all economic sectors to develop cotton production in areas with favorable conditions regarding land, climate, labor, to provide raw materials for the textile industry, reduce the importation of raw cotton; create more jobs, increase income, improve the living standards of farmers.

Article 2. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the People's Committees of provinces and cities producing cotton, and the Vietnam Textile and Garment Corporation to review and rearrange the planning of cotton planting areas towards creating commercial cotton production zones, intensive cultivation with irrigation systems, linked to industrial processing facilities, primarily in provinces located in the Southeast region, Central Coast, and the Central Highlands, ensuring that cotton yields higher income than other crops.

Article 3. Certain policies to encourage the development of cotton production.

1. On investment and credit

a) State budget capital invested in:

Building research facilities; producing original seeds and F1 hybrid seeds;

Importing high-yield and quality original seeds.

Upgrading seed production facilities in key regions to maintain original cotton varieties and rapidly multiply F1 hybrid seeds for distribution to cotton growers.

b) Credit capital allocated according to the State plan for the construction, upgrading, and modernization of equipment at processing facilities.

c) The State Bank of Vietnam shall direct the Vietnam Agricultural and Rural Development Bank and other credit institutions to implement Decision No. 67/1999/QĐ-TTg dated March 30, 1999, of the Prime Minister on certain banking credit policies to serve agricultural and rural development, ensuring sufficient and timely capital for cotton growers to borrow for purchasing seeds, raw materials, and supplies for cotton seed production, and for organizations and individuals to borrow for consuming cotton seeds.

d) The Ministry of Planning and Investment and the Ministry of Finance shall seek sources of capital from domestic and foreign organizations and individuals to invest in joint ventures and large-scale cotton seed and cotton seed production, ensuring quality requirements for the textile industry.

2. On science and technology

a) Strengthen research, selection, and breeding of new varieties to quickly produce cotton varieties with a yield of over 3.0 tons/hectare with various hybrid combinations and sterile lines of Vietnam.

Agricultural research institutes, universities, colleges, and vocational schools shall cooperate with the Cotton Research Center to breed high-yielding and quality cotton varieties.

Focus investment on infrastructure, equipment, and scientific and technical personnel to transform the Nha Ho Cotton Research Center into a Cotton Research Institute capable of researching and producing high-yielding and quality cotton varieties meeting the needs of the domestic textile industry.

b) The Ministry of Agriculture and Rural Development shall allocate annual extension plans within the Ministry's extension plan to strengthen extension work and transfer advanced techniques to cotton-growing households; summarize and disseminate successful cotton-growing household models for others to learn from; study and summarize cotton development models in the Central Highlands, South Central Coast, and Southeast regions to expand implementation.

c) Study intercropping and relay cropping models to integrate cotton into the stable crop structure of some regions, intensively cultivating cotton in areas with existing irrigation works.

The Ministry of Agriculture and Rural Development and the Vietnam Textile and Garment Corporation shall direct the implementation of Decision No. 19/QĐ-TTg dated January 8, 1998, on the Cotton Development Project and Crop Rotation with Cotton funded by the French Development Agency (AFD).

3. On consumption

a) The Ministry of Industry and the Vietnam Textile and Garment Corporation shall direct textile enterprises to prioritize the consumption of cotton fibers from domestic processing and pressing facilities. Resolve the interests between textile enterprises, cotton processing facilities, and cotton growers harmoniously.

b) Based on the opinions of the Government Price Board, the Vietnam Textile and Garment Corporation shall agree with the People's Committees of cotton-producing provinces to announce a minimum purchase price (floor price) for cotton seeds at the beginning of each season, ensuring that cotton growers have a higher income than growing other crops on the same area. The Chairmen of the People's Committees of cotton-producing provinces shall strictly monitor cotton seed consumption in their jurisdictions and prevent organizations and individuals from coercing prices, causing damage to cotton growers.

4. On the Cotton Insurance Fund

Annually, the Ministry of Industry shall direct the Vietnam Textile and Garment Corporation to allocate 1-2% of the value of imported cotton fiber to establish the Cotton Insurance Fund.

The Ministry of Finance shall take the lead and coordinate with the Ministry of Industry and the Vietnam Textile and Garment Corporation to issue regulations on managing and using this Fund.

Article 4. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

Article 5. The Ministers, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, and Chairmen of Provincial and Central City People's Committees are responsible for implementing this Decision./.