Five factors lead to the complexity of grain price situation.
Comprehensive Xinhua News Agency, November 4-the trading price in China's grain market is relatively low this year, and the temporary storage price of corn has been lowered for the first time. In this regard, Chen Xiwen, deputy head of the Central Rural work leading Group and director of the office, said on the 4th that five factors lead to the complexity of the current grain price situation.
Chen Xiwen said at a news conference of the State Information Office on the same day that in recent years, China's domestic grain production, the number of imported grain, and grain stocks have been increasing, which is to a greater extent brought about by economic globalization. He said that there are many factors in such a complex situation in grain prices: first, the lack of competitiveness of China's agriculture itself, second, our protection policy makes grain prices continue to rise, and third, the decline in international grain prices. fourth, the fall in global energy prices has led to a drop in freight prices, and fifth, the strong exchange rate of the RMB has stimulated grain imports.
"reducing the temporary storage price of corn is also taking into account the complexity of the current grain price." Chen Xiwen said, "in the future, prices will be separated from subsidies. Prices are mainly formed by the market. If the market price is too low, the government will adopt appropriate policies to directly subsidize farmers."
At the press conference of the State News Office on the same day, Han Jun, deputy director of the Office of the Central Rural work leading Group, said that farmers' cooperatives are allowed to carry out mutual financial assistance, but it must be strictly restricted within the community.
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