China's grain reform "at ease" -- the step of China's grain comprehensive Marketization
-
Last Update: 2002-11-08
-
Source: Internet
-
Author: User
Search more information of high quality chemicals, good prices and reliable suppliers, visit
www.echemi.com
Introduction: before the "11th" of new page 1, the State Council rejected a report on comprehensive grain reform According to the instructions, the grain market in the main production areas can't be released this year or next year, but it can't always be NDU's financial times got reliable news: just before the National Day holiday, a report advocating the full liberalization of the grain market was not approved by the State Council The State Council's instructions on the report indicate that grain markets in the main production areas cannot be released this year or next year, but they cannot always be NDU thorough plan NDU Financial Times learned that the grain circulation system reform office of the State Council, led by the State Planning Commission and composed of 14 departments including the economic and Trade Commission, the Ministry of Finance and the State Grain Administration, was established in April this year This office is located in the State Food Administration, whose task is to study and formulate a thorough food market reform program Soon after its establishment, the office sent five people to investigate all over the country Shortly after NDU, it began to spread among the people The research group of "further opening the grain purchase market, strengthening the construction of grain market system and standardized management" of the office has completed the market research work and formed a special report The report does meet its mission, according to people familiar with the matter The main contents of NDU include: canceling the task of grain ordering, canceling the certificate of grain transportation and marketing, and implementing the thorough marketization of grain purchase and marketing In the future, grain can be transported and sold freely throughout the country, without any transport and marketing certificate, and no one or any unit may obstruct the circulation of grain for any reason NDU liberalizes the purchase and sale price of grain, and the number of grain purchasers is determined by the market It is suggested that the purchase price and protection price of grain should be cancelled, and the mode of "following the market, high quality and good price, and low quality and bad price" should be adopted for grain purchase At the same time, the grain farmers should be compensated directly, so that they can obtain the social average profit rate, in order to maintain food security NDU liberalizes the pre-approval restrictions on the qualification of market subjects engaged in grain purchase No matter what kind of economic composition, no matter what form of ownership, it is only necessary to file with the grain industry and Commerce Department, and after the approval and registration of the industry and Commerce Department, it can engage in grain purchase business NDU protection price refers to the purchase of farmers' grain by state-owned grain enterprises at a price higher than the market price in order to protect the interests of farmers But this encourages farmers to grow some unpopular food varieties, and at the same time brings heavy financial burden to the government In addition, the protection price is sent to the farmers through the state-owned purchase and sale enterprises, which will generally be greatly discounted (such as price reduction, limited collection rejection, etc.) Analysts said that if these "liberalization" and "cancellation" are implemented, it will mean the full liberalization of China's grain market NDU, the brother of farmers in the main production area of NDU, however, the full liberalization of the grain market means the cancellation of the protection price, which will reduce the income of farmers in the main production area One insider said that the suspension of the opening of the grain market in the main production areas was mainly due to the fear that the farmers in the main production areas could not accept it Due to the large area and unbalanced economic development of NDU in China, the situation of farmers in different provinces is quite different In the main sales areas (mainly in the coastal developed provinces), the farmers have little dependence on food, and there are many choices other than planting food However, in the main production areas, grain is the lifeblood of farmers The reduction of grain income has an extraordinary impact on farmers NDU is also the main production area, and the situation is different In Henan, farmers grow and consume wheat, so the commodity rate of wheat is relatively low, and the impact of canceling the protection price will be less In Jilin Province, farmers grow a lot of corn, but they seldom consume it, and the commodity rate of corn is very high In this way, the impact of canceling the protection price on Jilin farmers will be very big Therefore, the government of NDU is faced with a dilemma: to protect the interests of farmers in the main production areas, and to reduce the financial burden Finding a balance between the two is a test for the government An approach that both the government and experts agree on in NDU is to directly subsidize, bypassing state-owned enterprises and directly sending subsidies to farmers, which is also mentioned in this failed plan But at present, the way of direct compensation is still in the pilot stage, which is not mature Since the 1980s, China's grain circulation market has been opened twice and contracted twice At present, the situation of 31 provinces and cities in China is as follows: 7 provinces and cities in the main grain supply and marketing areas are all liberalized; 13 major production areas are all liberalized, two of them are all liberalized, and some counties and cities are liberalized to varying degrees, while Hubei Province is more extensive; 11 balanced production and marketing provinces have liberalized 5 of them, and the remaining 6 are waiting to be seen One insider said that the suspension of the opening of the grain market in the main production areas was mainly due to the fear that the farmers in the main production areas could not accept it; there was also the suspension of the "three elders" issue According to the analysis of the insiders, there are still historical reasons for the failure of the grain reform plan, which are mainly reflected in the "three olds", that is, the elderly, the old account and the old grain Before 1998, NDU purchased more than 50 billion kg of high price grain in China After several years of treatment, there are still 39 billion kg of aged grain Before April 1, 1992, the potential loss of NDU was recorded, at the end of May 1998, the purchase and sale enterprises stopped interest and attached business, plus the loss in 2000 and 2001 and the disposal of stale grain, the accumulated loss on account was about 300 billion yuan In the past few years, there were 1.8 million purchase and sale enterprises in NDU, with a reduction of 50% and 900000 As of June 2001, 440000 people had been laid off, of which only 120000 had really terminated labor relations The vast majority of the laid-off workers in the grain system have not entered the local social security institutions, which makes the reform more difficult The "three old" problems of NDU are more prominent in the main production areas These problems are so intricate that people can't start If these problems can't be sorted out, it will be very difficult for the overall marketization According to the NDU 28 document, the food policy in the future will be subject to the 28 document issued by the State Council in August last year Document 28 marked a breakthrough in grain marketization last year, and now it means that the pace of grain marketization should be steadily promoted under its framework According to NDU, the core of No 28 document is to open up the sales area, protect the production area, the provincial governor is responsible for, and strengthen the regulation NDU expenditure area is to promote the market-oriented reform of grain purchase and sale in the main sales area, and to open up grain purchase, grain market and grain price under the national macro-control This has been basically realized at present NDU protection production area is to protect the grain production capacity and economic interests of the main production area, especially to protect farmers' enthusiasm for grain production First, the main production areas should continue to implement the "three policies and one reform" and adhere to the open purchase of farmers' surplus grain according to the protection price; second, the state should give key support to the main production areas of grain, focusing on the main production areas in terms of risk fund subsidies, grain depot construction and increasing the scale of central grain reserve; third, strengthen the construction of agricultural infrastructure in the main production areas of grain and steadily improve the production capacity of grain Power On this basis, the overall marketization of the main production areas needs time Although the grain market in the main production areas can not be fully opened for the time being, since 1999, China's grain market has been opened to a considerable extent, and the trend of full opening will not change Professor Li Siheng, consultant of expert advisory group of NDU state grain administration, told the financial times that in terms of protection price, the liberalization of grain market in recent years has been carried out from three aspects: one is to reduce the varieties purchased at protection price, the other is to increase the quality of protection price, and the third is to reduce the scope of protection price In 1999, the new policy announced that spring wheat, southern early indica rice and Jiangnan wheat from Heilongjiang, Jilin and Liaoning provinces, as well as Eastern Inner Mongolia Autonomous Region, northern Hebei Province and Northern Shanxi Province were withdrawn from the scope of protection price purchase since the new grain was listed in 2000 NDU in February 2000, corn in the Yangtze River Basin and its south area was also announced to withdraw from the scope of protection price acquisition In August 2002, the 28 document of the State Council clearly opened the grain market of 8 provinces (Zhejiang, Shanghai, Fujian, Guangdong, Hainan, Jiangsu and Beijing, Tianjin) and cancelled the protection price of corn in the Yellow River, Huaihe River and Haiti Only corn and rice in the northeast and Inner Mongolia, winter wheat in the Yellow River, Huaihe River and Haihe River and middle and late rice in the middle reaches of the Yangtze River were retained As far as the region is concerned, after the opening of 8 coastal provinces and cities, there are 5 provinces with balanced production and marketing in Guangxi, Yunnan, Qinghai, Guizhou and Chongqing Hubei Province, a major producer, has opened 67 counties Henan province directly supplies financial subsidies to farmers, and grain enterprises go to the market to buy food Shandong's plan is to open Qingdao, Yantai and Weihai At present, the situation of 31 provinces and cities in NDU is as follows: 7 provinces and cities in the main sales areas are all open; 13 main production areas are all open to two, and some counties and cities are opened to different degrees in the rest, while Hubei Province is more extensive; 11 production and marketing balance provinces have opened 5, and the remaining 6 are waiting to be seen NDU's refusal to repeat the past food policy of NDU is often criticized by experts Industry insiders said that the government's slowing down of marketization may be due to the consideration that it is better to be cautious than to let go of its income and influence the stability of the market When conditions are ripe, the government will steadily move towards full marketization Since the 1980s, China's grain circulation market has been opened twice and contracted twice NDU first started in 1985 On New Year's day, the State Council issued ten policies on further invigorating the rural economy, stipulating that "no unit or individual is allowed to issue any mandatory production plan to the farmers"; at the same time, "it is allowed for agricultural product management, processing and consumption units to directly sign purchase contracts with the farmers, and the farmers can also take the initiative to sign sales contracts with the consumers through cooperative organizations or the establishment of producers' associations Sales contract " In less than two years, however, due to the reduction of grain production and the rise of grain prices, the reform has returned to the tide - the government has quickly taken back the "free planting right" and "part of the market management right" The second time for NDU to be opened was in September 1992 According to the document No 56 issued by the State Council in 1992, "all provinces, autonomous regions and municipalities directly under the central government that have conditions for opening up can put forward implementation plans and submit them to the State Council for approval." But only nine months later, due to the pressure of rising food prices, food reform is back in the air NDU two premises NDU experts pointed out that China's grain circulation system has two premises: the first is to develop small and medium-sized cities and small and medium-sized enterprises, realize the transfer of part of agricultural labor force and relatively large-scale grain production, improve agricultural labor productivity, reduce the cost of grain production, and improve grain quality The second is to solve the historical burden At present, this burden is mainly accumulated in state-owned grain purchase and sale enterprises, and the government is taking measures to gradually digest it NDu These two conditions are not available at present, but they are also developing in a good direction: the adjustment of agricultural structure is playing a role in the development of agriculture and rural economy; the policy of returning farmland to forests is improving the ecological environment and digesting some high-priced grain stocks in the production areas; the method of grain risk fund contracting is effectively solving the historical problems accumulated in the state-owned grain purchase and sale enterprises Wait At the beginning of 1998, the Central Committee of the Communist Party of China and the State Council put forward "four separate" in Document No 2 of Zhongfa That is to say, separate government and enterprise, reserve and management, central and local responsibilities, new and old grain Finance
This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only.
This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of
the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed
description of the concern or complaint, to
service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content
will be removed immediately.