Grain imports cannot endanger the livelihood of farmers

How to activate the main body of the market that should appear is the biggest problem facing the reform of corn collection and storage system in our country.

At the 2016 China Grain and Oil Wealth Forum Chaganhu Summer Summit and Jilin Grain production and Marketing Cooperation Conference held on August 11, Chen Xiwen, deputy director of the Economic Committee of the CPPCC National Committee and former director of the Central Agricultural Office, pointed out that the reform of corn collection and storage system should first restore the role of market mechanism in price formation and improve the allocation of subsidies in the process of farmers' production. And the most important thing is to activate all kinds of market entities other than stored grain.

According to reports, when the temporary storage corn purchase policy was introduced in 2007, the temporary storage price of corn was 0.7 yuan / jin, which was basically in line with the relationship between market supply and demand. However, in the following years, it gradually broke away from the relationship between market supply and demand and turned to protecting the interests of farmers, and the purchase price rose all the way to 1.12 yuan / jin.

He said that the temporary storage acquisition and the minimum purchase price acquisition policy actually brought a misunderstanding to farmers, so that farmers knew how much they could sell after harvest before planting, so they felt at ease to plant boldly, and finally planted corn into iron crops. up to now, the planting area of corn has to be reduced.

Chen Xiwen said: "it is impossible to avoid market risks in the production of goods that have to be put into the market. Therefore, I don't think anyone can accurately estimate the price of corn at the end of this year, but we can use the CIF price of imported corn or corn substitutes and the lowest cost-benefit price of corn initial processing products as the basis for judging the market price of corn this autumn. " Chen Xiwen believes that the purchase of temporary corn actually puts subsidies to farmers in the price, and this subsidy method makes the market price continue to rise to become the highest price in the market, and the market has completely become a policy market. Therefore, it is very necessary and urgent to separate subsidies from prices and restore the role of market mechanism in grain pricing.

Chen Xiwen stressed: at present, the most important thing is to step up publicity efforts to make people aware of what determines prices under market economy conditions, and at the same time change the method of subsidizing farmers' income through prices to green box subsidies, to blue box subsidies, to subsidies without restrictions under WTO rules, and to further increase farmers' income.

The ultimate goal of the reform of corn collection and storage system is to restore the decisive role of market pricing in the formation of grain prices. If you want to set a price in the market, the price must be formed by the market; if you want to form a market, there must be enough market subjects to enter the market.

Chen Xiwen pointed out that in the past few years since the implementation of temporary storage corn acquisition in Northeast China, many market players have become accustomed to going to China to store grain for sale. There is plenty of grain in the national treasury, and they no longer collect grain. So how to activate the main body of the market that should appear is the biggest problem facing the reform of corn collection and storage system.

Chen Xiwen believes that to activate the main body of the market other than the stored grain, we must first solve two problems:

The first is to clarify how to digest the total corn inventory of more than 500 billion jin, how to dispose of it, what the structure is, and what to do at each stage, so that the main body of the market can rest assured to enter the market.

"the second is to conscientiously solve the loan problem faced by market entities who are qualified and willing to enter the market outside the medium grain storage system. If this problem is not solved, there will be a situation in which corn prices will come down after autumn, but will continue to be acquired by a grain storage company. " Chen Xiwen stressed.

The purpose of promoting the reform of agricultural supply-side structure is to improve the comprehensive efficiency of agriculture and the international competitiveness of agricultural products, while promoting the reform of corn collection and storage system is an important aspect of promoting agricultural supply-side structural reform.

Chen Xiwen pointed out: we should take the reform of the collection and storage system as a more complete view, and regard it as an important node in China's grain production, supply and marketing, and the restoration of the market mechanism.

"for example, supply exceeds demand and prices are higher than those in the international market, not only in corn, cotton, sugar and oil, but also in wheat and rice. Therefore, in promoting the reform of the corn purchase and sale system, we should explore experience and explore a way to ensure not only the smooth development of agriculture, but also the continuous improvement of farmers' income, but also effectively ensure the country's food security. " Chen Xiwen said.

On the point of advocating more grain imports, Chen Xiwen said: "Import is necessary, but the amount of grain imports cannot endanger China's agricultural security or the livelihood of our farmers. This is the most basic principle."