Production and marketing upside down forced grain purchase policy to speed up marketization

According to the latest national grain production data released by the National Bureau of Statistics, the country's total grain output in 2014 was 607.1 million tons, an increase of 0.9 percent. At the same time, net imports of China's three staple grains-rice, corn and wheat-have become normal.

Statistics show that imports of corn, wheat and rice have doubled in the past three years. In 2012, corn imports reached 5.207 million tons, wheat imports reached 3.689 million tons and rice imports reached 2.316 million tons. Grain imports, led by wheat, accelerated sharply in 2014, with grain imports, including wheat, rice and corn, surging 80.7 per cent in the first seven months compared with the same period last year, according to data released by the General Administration of Customs.

Industry experts believe that the overall slowdown in global economic growth, the low futures and spot prices of international grain and other agricultural commodities, and the widening grain price gap at home and abroad are the main reasons for the increase in China's imports.

The surge in import volume is mainly due to the serious upside-down of grain prices at home and abroad, and the price advantage of foreign grain is obvious, with a price difference of 400-500 yuan per ton. In 2013, China's three major grain output reached 540 million tons, with grain imports accounting for only 2.04%.

The domestic grain price is higher than the foreign grain price, which causes our country to import grain continuously. What impact will this long-term import have on our country?

Have a certain impact on the domestic grain market

A large amount of grain enters our country, which has a certain impact on the domestic grain market. On the one hand, the inflow of a large amount of foreign low-priced grain will squeeze out the market share of domestic grain enterprises and crush some grain enterprises; on the other hand, foreign grain will be more alternative to domestic grain because of low prices. starch factories and feed factories in corn and wheat purchase more foreign grain, while domestic rice factories, dealers, and downstream industries demand to replace domestic rice with foreign low-price rice. In this way, in the long run, in order to ensure profits, domestic processing enterprises have purchased foreign grain one after another, reducing domestic grain procurement, which will eventually hurt the income of farming people, and no one buys the grown grain.

Grain imports are by no means the more the better for a country, which may endanger the healthy development of domestic agricultural industry and cause the shrinking of the cultivated area of some crops. In addition, the sharp increase in foreign grain imports will restrain the domestic agricultural industry, lead to the lack of necessary incentives and motivation for industrial development, and bring potential risks to the long-term supply security of agricultural products.

According to the reporter's understanding, in fact, the Central Rural Economic work Conference held at the end of last year attached great importance to the issue of national food security. The meeting stressed that it is necessary to adhere to the national food security strategy of giving priority to ourselves, gaining a foothold at home, ensuring production capacity, moderate imports, and supporting science and technology; at the same time, it stressed that the Chinese people's rice bowls should be firmly in their own hands at all times, and resources should be allocated rationally. concentrate our efforts on keeping the most basic and important things first, so as to ensure basic self-sufficiency in grain and absolute safety of rations. In addition, the meeting mentioned the need to make good use of the two markets and two kinds of resources, appropriately increase imports, speed up the pace of agriculture going out, and grasp the scale and pace of imports.

Since the price of foreign grain is lower than that of domestic grain, our country imports a large amount of grain, so why is the price of grain in our country higher than that in foreign countries? How can we bring the price of grain in line with that of our country?