The pilot project of target prices of agricultural products will be more flexible if the policy is not expanded this year.
Han Jun, deputy director of the Central Financial and Economic leading Group Office and Deputy Director of the Central Rural work leading Group Office, revealed in a speech at the "National Research think Tank Forum New year Forum 2015" that China's policy on the target price of agricultural products will continue to do a good job in the pilot projects of soybeans and cotton, and there are no plans to expand the pilot target price system in 2015, but the policy will be more flexible to prevent the prices of agricultural products from rising and falling sharply.
Last year, according to the deployment of the central government, the three northeastern provinces and Inner Mongolia launched the soybean target price pilot, and Xinjiang carried out the cotton target price pilot. Han Jun said that after the pilot, the evaluation and tracking of the pilot has been going on, and now the problems encountered in the pilot have been thought of in the design, and there are also plans to solve these problems. For example, the market price of cotton is 13000 yuan to 14000 yuan per ton, and the target price is 19800 yuan per ton, equivalent to a financial subsidy of about 6000 yuan per ton of cotton.
"the biggest change in setting the target price reform pilot is that the prices of cotton and soybeans return to the equilibrium price of the market, and the market really begins to play a decisive role in price formation." Han Jun analysis, the target price pilot is conducive to control the excessive growth of inventory, to avoid a huge potential loss. Statistics show that in 2013, China's cotton inventory has reached 11.48 million tons, accounting for 60% of the global cotton inventory, the financial burden is very heavy.
Han Jun further pointed out that the ceiling of agricultural prices is not a steel plate, this ceiling can be adjusted, can be lowered, and now the cotton ceiling is down.
When talking about the next step of the policy on target prices, Han Jun revealed that the pilot of target prices for soybeans and cotton has only been carried out for one year, and it is necessary to continue to do a good job in the pilot. There is no plan to expand the pilot in 2015, and the minimum purchase price for wheat is still implemented. some products implement the temporary purchase and storage policy, which will be more flexible.
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