The main problems and defects of the grain market system in China

Introduction: Since the reform and opening up, China's grain market system has made great progress, but due to the late start of market construction, the impact of the planned economic system, and the relatively low degree of development, there are still a series of problems in the target mode, operation methods, policies and regulations, management and control, external environment, infrastructure construction and other aspects of the market, mainly manifested in: 1 Backward ideology restricts the development of grain market Due to the influence of the long-term grain planning system in the past, a strong concept of planned economy has been formed in the mind, with emphasis on production and less on circulation, insufficient awareness of commodity economy, insufficient understanding of the importance of the market, and more frames in the development of grain market Especially in the new situation that the socialist market economic system has been established, some people still think that grain commodities have particularity, they can't be fully pushed to the market, they dare not let the market mechanism play the main role in the formation and circulation of grain prices, so that the construction of grain market system can't adapt to the development of grain economy 2 The management of grain market is not in place and the order is disordered At present, most grain markets pay more attention to charges than management There are no clear management methods, trading rules and quality and safety requirements for grain trading in the market Most market managers also lack the necessary knowledge of grain and oil commodities and inspection Some illegal peddlers sell inferior grains, which are short of weight and harm customers As a result, the quality and quantity of traded grains are not guaranteed, and there are hidden dangers in safety and health 3 The construction of grain wholesale market lags behind, most of which have market or not Wholesale market is the central link of market system, and also the link with the most problems at present From the perspective of the operation of the national grain and oil wholesale market, the outstanding problems are as follows: first, there are few customers entering into the market for trading, and the trans regional bulk grain trading is mostly carried out on the OTC market, and there are markets everywhere, and there are transactions everywhere; although there are transactions in some markets, they are also formed by administrative means, and the grain that has not entered into the market for trading does not go through the formalities of transportation out of the province, and the railway department does not provide distribution Cars, once left the administrative means, are also Market-Free The reasons for this phenomenon are not only the construction of wholesale market itself and the problems of traditional habits, but also the rich connotation of using power for personal gain, which goes far beyond the scope of market and involves the deep-seated enterprise property rights system and the relationship between traders and enterprises Second, the distribution structure is unreasonable Many grain wholesale markets were not formed spontaneously to meet the needs of grain circulation, but were set up in the mid-1990s according to the requirements of administrative divisions or the construction of the three-level wholesale market system of provinces, cities and counties This kind of artificial market practice obviously violates the objective economic law, resulting in the construction of grain wholesale market too much chaos, convergence operation, mutual influence and lack of transactions Third, the nature of the market is not clear and the property rights are not clear Some are institutions, some are enterprises, some are dominated by management, and some market managers directly participate in transactions, which damages the principle of fairness and justice of the market Fourth, there is subject discrimination in market access, and there are many barriers for non-state-owned enterprises to enter the market 4 The development of grain futures market is slow and the high-level function of the market is deficient Futures market is an important part of modern market system It has the important function of discovering future price and avoiding risk It can make up for the shortage of spot market At present, China's grain futures trading is still too tightly controlled and restricted Most of the main grain varieties have withdrawn from futures trading There are few trading varieties, small activity space, lack of institutional investors, and the function of futures market is far from playing Due to the lack of function of futures market, the lack of risk aversion tools for enterprises to manage grain, and the lack of forward-looking prices for reference in national regulation and control market 5 The grain market at all levels is disjointed, and the mode of the three-level grain wholesale market system is not appropriate At this stage, although China has formed a grain market system framework composed of three levels of markets, namely, grain market, wholesale market and futures market, the positioning and functions of each level of markets are unclear, and there is no connection and interaction between them, which has not formed an organic whole and weakened the overall function of the market As for the previous period, it is wrong to set up grain wholesale market and three-level grain wholesale market system at the provincial, local and county levels in all administrative regions above the county level, which contradicts the functions and requirements of the wholesale market The establishment of grain wholesale market is to gather a large number of traders and increase trading opportunities Through collision, a more real market price will be formed The more concentrated the trading, the better the function of the wholesale market will be However, the establishment of the wholesale market at three levels of the provincial, local and county administrative regions will disperse the trading that should be concentrated, leading to the confusion of market layout Market or not, but affect the development of wholesale market The grain market system composed of three different levels and functions cannot be confused with the establishment of the market according to the three administrative divisions of the province, the prefecture and the county The latter is not tenable in theory, and it is not feasible in practice The development of the grain wholesale market has proved this in recent years 6 The reform of grain circulation system lags behind, which restricts the foundation and space of market development At present, the most important factor restricting the development of China's grain market system is still the system problem In recent years, although the market-oriented reform process of grain purchase and sale in China has been obviously accelerated, and the price and market of grain purchase and sale in most provinces have been completely liberalized, there are still some major grain producing provinces and regions that still implement the purchase policy of main grain varieties according to the protection price The dualization of the purchase and sale system has resulted in many frictions and contradictions The purchase and sale protection price is seriously behind the grain value and market price Apart from, it weakens the main role of market mechanism in price formation, and makes the grain purchased by state-owned grain purchase and sale enterprises according to the protection price unable to be sold at a lower price, which requires a huge amount of state financial subsidies to maintain operation At the same time, the current protective price purchase policy also limits other market entities other than state-owned grain purchase and sale enterprises to enter the grain purchase market and the fair competition among market entities, which seriously affects the development of the grain market system and the play of the market role If the current grain circulation system is not thoroughly reformed and the purchase and sale of grain and the price are not fully liberalized, it is difficult for China's grain market system to develop greatly 7 The main body is underdeveloped and the market lacks vitality The operation of grain market system depends on the formation of market subjects, and the development of grain market in China is just constrained by the immaturity of subjects At present, there are four main types of grain market entities in China, namely, state-owned grain enterprises, farmers, private enterprises (including collective, individual and private grain merchants) and various forms of joint-stock enterprises The trading volume of China's grain enterprises accounts for the main share of the market Among all kinds of main bodies, state-owned grain enterprises are not only economic entities with independent interests, but also undertake the macro-control task of the state on the grain market There is no distinction between the government and the enterprise, and the property rights are unclear All grain purchase and sale activities should be carried out in strict accordance with the national policies and relevant requirements Even the quantity and price of grain purchased are not independent, cannot be carried out in accordance with the market rules, and have not yet been completed It is a complete market subject with independent operation and self financing As a grain producer, farmers have encountered institutional obstacles that are hard to overcome when they enter the grain market, which are mainly manifested in the small scale of operation, the small quantity of commodity grain and the low degree of organization of the farmers in China Therefore, they often need to pay high transaction costs in the market exchange, and they are in a passive negotiating position, unable to compete with the large grain merchants Private enterprises and joint-stock enterprises have naturally integrated into the ocean of market economy since their birth, but at present, their quantity and economic strength are naturally limited, which is difficult to have a great impact on the grain market The lack of development of the main body will make the market competition lack of standardization, and lead to a certain degree of monopoly characteristics, which is not conducive to market development and price formation, and will reduce the allocation efficiency of the elements 8 The market operation is not standardized, and the infrastructure and trading means are backward At present, although all kinds of grain markets in China have developed, the state has not yet established a set of effective management methods for grain markets There are many government departments and unclear responsibilities in market management Some necessary market laws and regulations have not been established Grain trading activities are lack of corresponding constraints and regulations The order is disordered and the contract performance rate is low Most of the internal management systems of the market are not perfect, and the trading rules are not perfect There are no clear regulations on the entry and exit of enterprises, trading methods and quality standards of grain and oil The infrastructure of many grain markets is poor, and the means and methods of grain trading are backward, especially in rural areas and small and medium-sized towns Most of the grain markets are only set up on a site in the agricultural trade markets, which are simple in place and incomplete in facilities Some regional grain wholesale markets are also lack of advanced grain trading equipment and means, and the quality of their employees is low, so they can not adapt to modern cities Requirements for field development 9 The market development environment is not ideal, and macro-control needs to be improved Opening is the essential attribute of market economy, without which there is no market However, in order to protect local interests, many places still often implement regional blockade on grain management The system of responsibility of grain governors and the system of financial responsibility have strengthened the awareness of local protection and hindered the formation of the national unified market The government also lacks necessary policy support and economic support for the construction of grain market system, and many human factors are still affecting the development of the market In the modern market economy, due to the defects of the market mechanism itself, the government needs to adjust and control the market operation properly However, this kind of adjustment and control is based on giving full play to the market mechanism, and the means are mainly economic methods In recent years, although the regulation system of grain market has been initially established in China, a set of practical regulation methods and parameters have not been formed due to the lack of regulation experience under the market economy system In the regulation and control, there are still many policy means, few economic means, and economic regulation means, such as grain reserve rotation, selling, aging grain processing, etc., are not completely carried out through the market Moreover, due to the imperfection of market system and the lack of grain futures price signal as a reference, the macro-control mainly depends on the information of the spot market to make decisions, which often leads to the lag of control opportunity, the increase of control cost, the unsatisfactory effect of control, sometimes even the synchronous shock, and the expansion of market volatility The existence of the above problems has seriously affected the development and function of China's grain market system, which needs to be solved as soon as possible in the future market construction