MySheen

Price formation mechanism of agricultural products: let the market play a major role

Published: 2024-09-16 Author: mysheen
Last Updated: 2024/09/16, The price of agricultural products is not only related to agricultural products themselves, producers and consumers, but also affects the improvement of agricultural quality and efficiency, farmers' production and income and rural economic and social development, but also one of the factors for the normal development of agricultural products market. However, in the current agricultural products

The price of agricultural products is not only related to agricultural products themselves, producers and consumers, but also affects the improvement of agricultural quality and efficiency, farmers' production and income and rural economic and social development, but also one of the factors for the normal development of agricultural products market. However, in the current price formation mechanism of agricultural products, with the rise of labor costs, production costs, international agricultural prices and other reasons, the prices of major domestic agricultural products often exceed the international market. At the same time, there are some reasons such as the "yellow box" of agricultural subsidies, which also aggravate the price fluctuation of agricultural products, dampen the production enthusiasm of farmers, and cause the low competitiveness of agricultural participation in the market. Deputies and committee members of the two sessions have come up with a good prescription on how to reduce the ups and downs of agricultural prices and form a set of prevention and control mechanism to deal with risks.

Set up information circulation channels and monitoring systems related to the market, producers and consumers, and adhere to the principle of market pricing.

"the prices of agricultural products are linked to farmers at one end and consumers at the other. At present, the price formation of agricultural products, especially those of important agricultural products, is no longer determined by the market, but by some non-market factors." Member Lai Mingyong, member of the standing Committee of the Central Committee of the China Democratic Construction Association and president of Changsha University of Science and Technology, believes that the current abnormal price fluctuations of agricultural products are mainly affected by the four levels of supply, demand, market, and government. but the fundamental problem is that the market information of agricultural products is asymmetric, which leads to the price of agricultural products deviating from the fundamentals of the price. There is no authoritative market warning issued by the state before the planting and breeding of agricultural products, so producers naturally plant and breed blindly on the basis of feeling and experience. Lai Mingyong said: "it is suggested that the state establish a network platform and early warning system for agricultural product transaction information monitoring to solve the problems of farmers' farming and market misconnection, production and supply misconnection, and information and market asymmetry, so that farmers can expect and judge the market before planting and breeding."

"prices are formed in circulation and cannot be set by anyone who wants to." Deputy Li Shiqiang, vice president of the National Federation of Urban Agricultural Trade Centers, believes that only with smooth information can we get out of the "strange circle" of agricultural products. "what the government should do is to have a foothold in the long run and follow the laws of the market economy." as far as possible, we should give full play to the signal role of the integration, research, and release of agricultural product price information, guide price stability and help scientific decision-making, rather than interfering in agricultural product prices. "

"the formation of the target price is determined by the supply and demand of the market, which plays an important role in improving the price formation mechanism of agricultural products." CPPCC member Chen Xiwen, director of the Central Agricultural Office, said: let the market play a major role in price formation, so as to convey correct market demand information to farmers, let farmers carry out production according to market demand, and gradually resolve the contradictions formed in recent years.

Cultivate brand products and superior agricultural products, carry out standardized, intensive and large-scale production and operation, and enhance competitiveness

Chen Zhangliang, member of the standing Committee of the CPPCC National Committee and vice chairman of the China Association for Science and Technology, believes that efforts should be made to improve the price formation mechanism of agricultural products, suggesting the use of science and technology to develop modern agriculture and cultivate brand products and superior agricultural products. we should carry out standardized, intensive and large-scale production and operation, reduce the production cost of agricultural products, improve the ability of agricultural products to resist natural disasters, and stabilize the market and price fluctuations of agricultural products. Reduce the income risk of farmers.

A good brand is the guarantee of quality, which is related to the price trend of agricultural products. "Why are imported agricultural products expensive? people are still willing to buy them, because they think the quality is guaranteed." Zhang National Committee member, vice president of Henan Agricultural University, suggested that the supervision over the quality of agricultural products, especially brand agricultural products, should be strengthened. "the quality is good, the market circulation is fast, and the price trend is natural and smooth." thus it can stabilize the price fluctuations of other related agricultural products. "

Committee member Zhu Baocheng, president of the China Association for the Development and Service of High-quality Agricultural products, suggested that products with high technological content, large market capacity, high added value and low energy consumption should be included in the strategic planning, and the industrial chain, value chain and supply chain of brand agriculture should be established and perfected. Enhance the influence of brand agriculture, guide it to become bigger and stronger, participate in the international agricultural product market competition, and strive for the market price of agricultural products "say" Help agricultural products go abroad and play a promoting role in improving the price formation mechanism of agricultural products in our country.

 
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