The Logic and Thinking of China's Grain Price Policy Reform

The increasingly serious problems such as high grain stocks and surge in imports highlight the urgency of reforming grain price policies such as temporary storage. At present, China's grain price policy adjustment mechanism has been formed, is at an important juncture of reform. The reduction of temporary storage prices in 2015 is a transitional adjustment. Although it is conducive to protecting the interests of grain farmers, it may not help alleviate the current high corn inventory problem, and the policy adjustment is far from in place. On the contrary, if supporting measures are not taken in time, corn stocks may continue to increase in 2015, and it may also cause more serious new problems. It is suggested that in accordance with the idea of "directional policy, separation of price compensation, innovative regulation and comprehensive supporting", we should adopt the combined reform mode of "withdrawing grain price support" and "grain income subsidy", innovate the grain regulation system, and make the grain price adjustment in place in two or three years, so as to form a grain price formation mechanism based on market pricing and a farmers' interest protection mechanism with direct subsidies as the main body. To make a prompt decision, according to the "classification of disposal, phased digestion" idea, reduce the price of sales to deal with grain storage stocks.

Published: 2016-02 | Editor: Zhai Tianchang