Rice and wheat continue to implement the lowest purchase price

The "Summary of the reply to recommendation No. 1480 of the third session of the 12th National people's Congress" (hereinafter referred to as the "summary") recently released by the Ministry of Agriculture shows that the two varieties of grain rations, rice and wheat, should continue to adhere to the lowest purchase price, and corn, soybean, cotton, rapeseed and other varieties should pay attention to giving play to the decisive role of market prices.

The "Abstract" shows that in the next step, the National Development and Reform Commission will, in accordance with the relevant requirements of the third Plenary session of the 18th CPC Central Committee on improving the price formation mechanism of agricultural products, be based on China's national conditions and agricultural conditions, and in accordance with the principle of "giving prominence to key points, guaranteed and effective", implement differential support policies for different varieties. For the two varieties of grain rations, rice and wheat, we should continue to adhere to the minimum purchase price, but it is necessary to change the market expectation of rigid price increase, so as to give better play to the role of the market mechanism and weaken the function of the minimum purchase price policy to "protect income". Reduce farmers' excessive dependence on rising grain market prices, and make good use of price support and subsidies to protect farmers' interests. For corn, soybean, cotton, rapeseed and other varieties with large demand elasticity, long industrial chain and high degree of connection between domestic and foreign markets, attention should be paid to giving full play to the decisive role of the market in forming prices, guiding production through market price signals and regulating supply and demand. promote the sustained and healthy development of the industry.

From the analysis of the reporter's continuous investigation and analysis of the domestic agricultural product market in recent years, with the support of the government's implementation of the minimum purchase price policy for agricultural products for many years, the output of domestic agricultural products has remained stable and the market supply has maintained a sufficient pattern, but it has also caused the imbalance between crop planting structure and market supply structure, resulting in distortions in the market prices of some agricultural products. In particular, the rapid growth of imports of some agricultural products has had a serious impact on domestic related industries, such as imported sugar, cotton, soybeans and other large quantities have caused serious damage to domestic related industries, which is not conducive to ensuring the security of China's agricultural products supply. In addition, excessive collection and storage has also caused a huge inventory of some agricultural products, which has put a heavy burden on the government's finances. for example, at present, the temporary storage stocks of corn, rice, vegetable oil and cotton have seriously exceeded the normal inventory level. it hinders the normal circulation of the market and makes the market mechanism unable to play its role.

Some agricultural market experts said that the abstract believes that the minimum purchase price for rice and wheat, the two main food rations, should be maintained, but the market expectation of rigid price increase should be changed. and for varieties with large demand elasticity, long industrial chain and high connection between domestic and foreign markets, such as corn, soybean, cotton and rapeseed, we should pay attention to giving full play to the decisive role of market-formed prices. This will change the strange phenomenon of an across-the-board approach to agricultural products market policies in the past, and the agricultural products policies that are treated differently and effectively implemented in the future will be very conducive to the stable development of the domestic agricultural products market and enrich market supply varieties. to eliminate abnormal phenomena such as excessive price differences between similar agricultural products at home and abroad.

Market participants believe that according to the spirit of the "summary," there will be a de-policy process in the domestic agricultural product market in the future, the minimum purchase price policy will withdraw from the corn and other markets, and some new changes will occur in the rapeseed, corn and other agricultural products market. a new market pattern will also be formed.