China liberalizes the price of agricultural products and the target price system of grain will not be expanded in 2015

Ningdezhou is the head of Yunnan Anning Longyuan flue-cured tobacco planting professional cooperative. in the early years, he planted dozens of mu of flue-cured tobacco. Because the income of planting flue-cured tobacco is not as good as that of growing vegetables, he has switched to other crops in recent years.

As the National Development and Reform Commission announced the abolition of tobacco prices at all levels, such as flue-cured tobacco, he felt that tobacco prices might rise. "after planting less, the price moves with the market, and the price should rise." On January 5, he told reporters.

A day earlier, the National Development and Reform Commission announced a number of reform measures to liberalize 24 goods and services, the first of which was to liberalize the purchase price of tobacco.

The NDRC document pointed out that on December 17, 2014, the National Development and Reform Commission and the State Tobacco Monopoly Administration issued a notice to liberalize the purchase prices of flue-cured tobacco, Burley tobacco, oriental tobacco and other varieties and grades of tobacco.

After the liberalization of tobacco prices, there are no government pricing items in the field of agricultural products in China, and prices are all set by the market. The state mainly guides the reasonable formation of prices by means of minimum purchase price and target price, protects the interests of agricultural producers, ensures national food security, and promotes the sustained and healthy development of the agricultural industry chain.

The reporter of the 21st Century Economic report learned that at present, the country still has government pricing, but mainly indirect pricing. For example, the minimum purchase price of grain. When the market price is lower than this price, the residents are willing to sell to the state, and the state collects reserves, but when the actual price is higher than this price, the government cannot intervene. In addition, in the field of cotton and soybeans, the target price is implemented.

Li Guoxiang of the Institute of Rural Development of the Chinese Academy of Social Sciences pointed out that from the perspective of the direction of reform, the future government will not set prices directly, but generally adopt indirect pricing, such as the target price, but there are still many problems to be solved.

"for example, when the actual market price is lower than the target price, how to subsidize farmers, such as area subsidy or output subsidy, still needs to be studied." He said.

Prior to this, there was also news of the implementation of the target price of sugar in Guangxi, but the actual situation is that the range of the target price will not be expanded for the time being in 2015, given that the pilot project of the target price of cotton has not been successful.

The government no longer sets prices for agricultural products

Over the years, as a result of the government's implementation of agricultural product pricing, market demand has been seriously distorted.

The simplest example is that when the state implements the cotton collection and storage price, the international cotton price per ton is thousands of yuan lower than the domestic one, while the domestic processing enterprises have to spend more money to buy domestic high-priced cotton, which makes textile enterprises suffer heavy losses. While the state spends a lot of money on the construction of cotton reserves, it bears the huge collection and storage costs, and cotton farmers do not benefit.

The same is true of flue-cured tobacco.

Ning Dejing, head of Yunnan Anning Longyuan flue-cured Tobacco planting Professional Cooperative, told reporters that in recent years, the local income from growing tobacco is no longer comparable to vegetables. At the peak of the village where the cooperative is located, there were more than 1000 mu of flue-cured tobacco, but at present it is only more than 300mu.

Ningde state does not grow more than 30 mu of flue-cured tobacco. The reason is that although tobacco can be sold for more than 30 yuan per mu, gross income per mu is more than 6000 yuan, and the rent of the field is removed, it is still about 4000 yuan, but it is far inferior to other crops. When vegetables are good, there is a profit of more than 10,000 yuan per mu.