The price of domestic grain is 50% higher than that of foreign countries. The self-sufficiency rate of grain is declining year by year.

50% more expensive than abroad, domestic grain prices are difficult to "bow".

The domestic prices of rice, wheat, corn and soybeans are 17.26%, 32.8% and 88% higher than the international prices respectively. 24%, 60.16%

Author: Huang Lai-Sheung

Recently, the Ministry of Land and the Ministry of Agriculture jointly issued a notice on further delineation of permanent basic farmland a few days ago, requiring that on the basis of the existing work of delineating permanent basic farmland, priority will be given to the existing high-quality arable land around cities and towns and along transportation lines as permanent basic farmland to maximize the comprehensive production capacity of grain.

Recently, the Ministry of Land and the Ministry of Agriculture jointly issued a notice on further delineation of permanent basic farmland a few days ago, requiring that on the basis of the existing work of delineating permanent basic farmland, priority will be given to the existing high-quality arable land around cities and towns and along transportation lines as permanent basic farmland to maximize the comprehensive production capacity of grain. The state is stepping up efforts to ensure the comprehensive productivity of grain, but in the context of a high degree of self-sufficiency in the domestic grain market, its market competitiveness has encountered a bit of embarrassment: domestic grain prices are much higher than import prices, especially corn and soybeans, with a price difference of more than 50%.

Huang Lishang, a reporter from Nandu

one

The rate of grain self-sufficiency is declining year by year.

According to the outline of the National medium-and long-term Plan for Food Security (2008-2020), China's grain self-sufficiency rate needs to be maintained at more than 95%. Although the grain self-sufficiency rate has been above 95% in the past five years, it has declined slightly every year.

two

Soybean imports soar, self-sufficiency rate loses 95% red line

(data source: customs, grain and oil market report)

According to the outline of the medium-and long-term Plan for National Food Security (2008-2020), China's grain self-sufficiency rate needs to be maintained at more than 95%. Because China's current grain self-sufficiency rate is replaced by grain (including grain, wheat, corn) self-sufficiency rate, if soybeans are taken into account, due to the rapid growth of soybean imports, the actual grain self-sufficiency rate has broken through the red line.

three

Implement import quotas to ensure a high degree of self-sufficiency

Even with soybeans, our food self-sufficiency rate is still very high. But behind the high rate of self-sufficiency, we have paid a high price. International grain prices are much lower than domestic grain prices, but in order to make "grain highly self-sufficient and food rations absolutely safe", the state implements a quota system for grain imports. In short, consumers want to eat expensive food.

Reveal the secret

Why is the price difference so big?

Reason 1: in recent years, the prices of domestic agricultural means of production, labor prices, and land prices have all risen relatively fast, but the operating scale of farmers has not been expanded accordingly, and the disadvantage of prices has emerged.

The second reason: in order to protect the interests of farmers, the state raises the minimum purchase price of grain or the price of retail reserves and subsidizes farmers.

The third reason: the tariff is too low to protect domestic agricultural products. According to the "half-monthly meeting" data, the average tariff level of agricultural products in the world is 62%, and the highest tariff level can even reach more than 1000%. The average tariff level of China's agricultural products is 15.2%, which is less than 1% of the average level of the world. The tariff on soybeans is only 3%. China implements tariff quota management on important agricultural products such as wheat, corn, rice, sugar, cotton and wool, and the highest tariff outside the quota is only 65%. For example, Japan levied a tariff of 341 yen on imported rice at one kilogram, with a tariff rate as high as 778%. Because of the sharp rise in the price of rice in the international market, the price of rice made in Japan has dropped. Japan lowered the tax rate after a survey of the international market in 2012, but a kilogram of rice is still taxed at 122 yen, with a tax rate of 280%.