The temporary storage policy is brewing to be completely abolished: corn may become the next trial product.

Corn may become the next target price subsidy pilot varieties ten years of temporary storage policy is coming to an end

Chen Yanpeng reporting from Beijing by Huaxia Times

"departments such as the National Development and Reform Commission and the Ministry of Agriculture are planning to abolish the temporary reserve policy altogether and intend to replace it with a more market-oriented target price subsidy system." A few days ago, a grain expert involved in relevant policy research revealed to the Huaxia Times.

It is reported that the target prices for cotton and soybeans in 2014 were announced in early April and late May this year, respectively. However, so far, in addition to ending the temporary storage of soybeans and cotton, corn, rapeseed and sugar are still following the temporary storage policy of the past few years, and rice and wheat are also implementing the minimum purchase price policy.

Our reporter learned from people familiar with the matter that the general direction of ending the temporary storage policy of corn, rapeseed and sugar has been set, and corn may become the next variety to implement the pilot target price after soybeans and cotton, which will be implemented as soon as next year. The above-mentioned experts said that the agricultural 13th five-year Plan currently under study has put the cancellation of temporary storage on the agenda, and the temporary storage policy launched in 2005 has come to an end.

Pilot expansion

The pilot scope of cotton target price reform is brewing and expanding. Recently, a person in charge of the Price Department of the National Development and Reform Commission said at a news conference that in addition to the pilot areas in Xinjiang, there are also major producing areas in the Yangtze River and Yellow River basins, which will also be appropriately subsidized by the state.

As for the expansion of pilot varieties, the above-mentioned responsible person said that "there is no timetable at present," but he also pointed out that the situation of each agricultural product is different, and whether it can be expanded to other varieties in the next step depends on the pilot reform of cotton and soybeans.

The NDRC gave a positive evaluation on the pilot project: since the launch of the pilot project, the planting area of cotton in Xinjiang has been relatively stable, the price gap between domestic and foreign cotton and soybean markets is gradually narrowing, and business confidence and market vitality are also gradually increasing.

"in fact, the implementation of the target price reform is to adjust the original national temporary collection and storage policy to the target price policy, which takes more into account the interests of textile enterprises." Liu Xiaonan, deputy director of the Economic and Trade Department of the National Development and Reform Commission, said.

In the past, the state collected and stored cotton at a fixed price higher than the market, and the domestic cotton price was much higher than that of the international market, which affected the competitiveness of textile enterprises. However, after the implementation of the target price reform, the cotton price will be formed by the market supply and demand policy, the linkage between domestic and foreign cotton markets will be enhanced, and the price gap at home and abroad should be narrowed to a reasonable level. The competitiveness of China's textile enterprises has been improved.

Wen Bu, deputy director of the Policy Research Office of the National Development and Reform Commission, said in this regard that from the perspective of the cotton price gap inside and outside the new year, it is expected to narrow to a reasonable range, which is conducive to curbing the substitution of chemical fiber and reducing the import of cotton yarn, and domestic cotton demand is expected to stabilize and pick up.

In the view of the decision-making departments, the implementation of the target price system is a major mechanism innovation to improve the price and market regulation mechanism of agricultural products in our country.

"what is certain now is that the pilot areas for cotton target price reform will be expanded, and it is only a matter of time before the pilot varieties are expanded, and rapeseed, corn and sugar will be included in the pilot in the future." The above-mentioned food experts said.

Our reporter learned from informed sources that the next pilot project to implement the target price will be corn, which will be implemented as soon as next year. The food expert also believes that "corn is the most likely." he said that corn is not food rations, but is mainly used for feed crops, so it is more convenient to experiment.