Multiple objectives should be achieved in Agricultural Product Price Reform

Recently, it was learned from the National Development and Reform Commission that since late November 2014, the National Development and Reform Commission, together with relevant departments, has issued eight documents, liberalizing the prices of 24 goods and services and devolving one pricing authority. These include liberalizing the purchase price of tobacco leaves. The purchase price of tobacco is the last variety to be set by the government in the field of agricultural products, which indicates that the price of agricultural products in China will all be formed by the market, and the government pricing will withdraw from the historical stage completely.

Since the 18th CPC National Congress and the third and fourth Plenary sessions of the 18th CPC Central Committee, many useful explorations have been made in reforming the pricing of agricultural products. After liberalizing the purchase and sale prices of most agricultural and sideline products in 1985, the prices of live pigs and pork in 1992, and the purchase price of cotton in 1999, China liberalized the grain purchase market and prices in 2004. The third Plenary session of the 18th CPC Central Committee also clearly stressed: "Let the market play a decisive role in the allocation of resources and give better play to the role of the government."

The introduction of agricultural product pricing to the historical stage has fully demonstrated the government's determination and strength to release the "invisible hand" and let the market play a decisive role in the allocation of resources. At present, China has initially established a minimum purchase price policy for rice and wheat, a temporary purchase and storage policy for corn and rapeseed, and a pilot project for the reform of target price subsidies for cotton and soybeans. A preliminary plan has been established to alleviate the periodic fluctuation of market prices for live pigs, and comprehensive measures have been taken to establish a reserve system for important agricultural products, improve the import and export adjustment mechanism, and increase financial subsidies. It has prevented the sharp fluctuations in the prices of major agricultural products and protected the interests of farmers.

The price liberalization of agricultural products is not changed at once, but while giving full play to the role of the market mechanism, we should combine market regulation with government regulation and constantly strengthen and improve the macro-control system of agricultural products prices. The purpose of price reform is to ensure national food security, improve agricultural production efficiency and competitiveness, and protect farmers' income. It is necessary to comprehensively use a variety of market means to achieve the goal of price reform of agricultural products.