When will the rice market come out of the "cold winter"

According to the China Grain Network, after entering June, the temperature continues to rise, and the speed of domestic rice sales has slowed down significantly. This is followed by a decline in the daily processing capacity of the factory and an increase in the phenomenon of downtime and maintenance. Moreover, most factories say that rice processing profits have hit bottom or are in a state of loss for a long time, so how long will this phenomenon last and what is the main reason?

In order to protect farmers' enthusiasm for growing grain and promote the development of grain production, the state has implemented the lowest purchase price policy in the main rice producing areas since 2004. Since its implementation for 10 years, the minimum purchase price of rice in China has increased year by year, with a cumulative increase of 0.65 yuan per jin for early indica rice, 0.66 yuan per jin for middle and late indica rice and 0.80 yuan per jin for japonica rice. Although the increase of the minimum purchase price of rice has ensured the interests of farmers, for rice processing enterprises, the rising price of rice has led to a continuous increase in the costs of acquisition, storage and processing, while the profit space of processing has been constantly squeezed. it is obvious that the raw grain is inverted with the actual price of rice.

It is understood that in June this year, the operating rate of domestic rice processing enterprises was less than 20%, and the daily processing capacity of some enterprises with an annual processing capacity of more than 100000 tons was only 10% of the daily production capacity.

In April 2015, the country imported 330236 tons of rice through official channels, an increase of 2.64 percent over the same period last year, with monthly imports hitting the highest level since 2013, according to the General Administration of Customs. The above figures are all regular imports, excluding smuggled rice.

Since the introduction of imported rice into the market, the business situation of China's rice processing industry has gone from bad to worse, especially the scope of influence of imported rice has spread from the marketing area to the producing area. Most rice mills say that business is becoming more and more difficult! One of the main reasons for this phenomenon is that imported rice gets a share of domestic rice at a low market price. As of June, the wholesale price of imported Vietnam 504 rice in Foshan, Guangdong was 3500 yuan / ton, which was 960 yuan / ton compared with the ordinary northeast round grain rice produced in 2014. The large price difference tempts domestic rice to blend with imported rice to reduce costs and stimulate shipments. this phenomenon is more common in the main rice producing areas, and blending rice in the market in sales areas has become the mainstream.

If the price of rice does not come down all the time, and the price of rice rises weakly, the competition between domestic rice and imported rice will become more and more fierce in the later stage. It is difficult for the rice market to get out of the "cold winter", and the time to usher in spring will be longer. The author believes that what the rice industry should do at present is to ensure the quality of rice and strive to do fine and fine. Reject the immediate interests, enhance the brand effect, in the future rice industry reshuffle process, maintain the advantage, and then not be eliminated.