Perfecting the price formation mechanism of agricultural products is beneficial to enhance the market competition of agricultural products.

"China's market competitiveness of agricultural products is not strong, which needs to be managed by means of industrialization, which can improve efficiency, and then it is possible to really enhance the market competitiveness of agricultural products. At present, the overall direction of reform is to gradually reduce administrative intervention and give full play to the role of the market mechanism. " Tan Yunming, a professor at the Central University of Finance and Economics, said in an interview with the Securities Daily.

The General Office of the CPC Central Committee and the General Office of the State Council recently issued the Comprehensive implementation Plan for deepening Rural Reform (hereinafter referred to as the "plan"), proposing to improve the price formation mechanism and market regulation system of agricultural products.

Mao Xuefeng, an expert on the price of agricultural products at Renmin University of China, said that China's agricultural development faces many problems, but one of the core problems is that the price gap between domestic and foreign agricultural products is too large. at present, the prices of imported agricultural products after duty payment are 30% lower than those in China. Due to the high price of agricultural products in China, there is a lack of competitiveness in the market, which leads to the entry of foreign goods into the market and domestic goods into storage.

For many years, the temporary grain collection and storage policy implemented in our country not only ensures the interests of farmers, but also runs counter to the market law. Since 2008, due to the role of the market support policy, food prices have risen rapidly. Since 2014, the state has implemented target price pilot projects on two varieties of cotton and soybeans, "ice-breaking" domestic agricultural product price reform.

The "plan" issued this time requires that according to the importance of all kinds of major agricultural products in the national economy and the people's livelihood, we should adopt the method of "implementing policies by variety and advancing gradually" to improve the price formation mechanism of agricultural products. We will improve and continue to implement the policy of minimum purchase price for rice and wheat. In accordance with the idea of "separation of price and compensation", we will continue to carry out pilot reforms in the target prices of cotton and soybeans, and improve the methods for the distribution of subsidies. Reform and improve the corn collection and storage policy. We will improve the regulation and control of the agricultural products market, avoid excessive government intervention, invigorate market circulation, and enhance market vitality.

Everbright Futures believes that after price liberalization, the market will play a better role in determining prices, and the market price distortion caused by domestic long-term policies such as storage and minimum protective prices will also disappear. This will make the market more transparent and the price in line with the international market.

"liberalizing the prices of agricultural products does not mean that the government no longer manages them." Xu Kunlin, director of the Price Department of the National Development and Reform Commission, said that the prices of agricultural products are completely formed by the market, and there are no government pricing programs. However, after opening up, the government will take a variety of means and measures to stabilize agricultural production, protect farmers' enthusiasm for production, and increase farmers' income.