The high yield of rice broke the new high, and the Council of Agriculture expanded the purchase of public grain to support grain prices. Chen Jizhong: Rice drives 200 billion social benefits.

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According to the statistics of the Agriculture and Food Department, the harvest area of rice fields in Taiwan is about 272,800 hectares, which is about 20, 000 hectares higher than the market capacity. In addition, the hot weather in recent years has led to a higher yield of rice. The yield per hectare has been rising steadily, with a harvest of 1.75 million metric tons per hectare in 106 years. Last year (107), it even reached 1.94 million metric tons, a record high for the previous period of rice cropping. As a result, the market supply increased by 100000 metric tons, and grain prices plummeted.

The first phase of rice production is about to be harvested this year (108 years). Due to favorable weather conditions, the Council of Agriculture estimates that the yield remains high. In order to stabilize grain prices, the Council of Agriculture has proposed a number of adjustment measures, including the purchase of surplus grain will not be limited to 3000 kg. The purchase volume is capped by the average harvest of each county and city plus 10%, that is, the harvest of most farmers can be fully handed over to public grain (see below for details).

The Agriculture and Food Administration said it estimated that it would spend NT $1.6 billion to absorb an additional 70, 000 metric tons of rice and reduce market selling pressure. Chen Yan-ching, chairman of the Taiwan Rice planting Association, affirmed that increasing the purchase of surplus grain would help stabilize the market price.

In response to questions about the explosion of public grain caused by the surplus of rice and the increase in state treasury expenditure, Chen Jizhong, chairman of the Council of Agriculture, said that the export of public grain would be strengthened. Because rice fields not only produce grain, but also shoulder the functions of soil and water conservation, ecology, and homeland security, the state spends about NT $7 billion a year through insurance and purchase, which not only drives the output value of rice, but also extends 200 billion of the social effects, and calls on people to support the sustainability of rice fields.

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The double-track system of purchasing and harvesting rice, and the purchase and direct payment of public grain go hand in hand.

Taiwan has implemented the "guaranteed purchase of public grain" for many years, and the purchase price is divided into three levels: "plan, tutoring, and surplus grain" (it has nothing to do with the quality of rice, but the purchase price is different). Farmers can choose to hand in public grain or be purchased by grain merchants. In 2019, the first phase of rice cultivation plans to buy 26 yuan per kilogram of japonica rice, 25 yuan per kilogram of indica and waxy rice, 23 yuan of japonica rice, 22 yuan of indica and waxy rice, 21.6 yuan of japonica rice and 20.6 yuan of indica and waxy rice.

Because the purchase of public grain does not reflect the price according to the quality of rice, farmers mostly aim to increase yield. because of the hot weather in the south, the first phase of rice cultivation can even produce 10,000 kilograms of wet rice per hectare (about 7,000 kilograms of white rice). High yield and the amount of rice is decreasing year by year, the market is under heavy pressure, and there are often explosions of public grain.

After the new government took office in 2016, in order to encourage rice farmers to "focus on quality without impulse", in addition to the purchase of original public grain, new "direct payment measures" have been added to encourage farmers to produce high-quality rice, which can be sold by themselves or handed over to grain merchants at better prices. the government pays farmers 13500 to 16500 yuan per hectare in the hope of improving rice quality and reducing overall yield.

Huang Zhaoxing, head of the grain storage and transportation team of the Agriculture and Food Department, said that at present, about 70% of rice farmers in Taiwan participate in the declaration system (note). After declaration, they can choose to hand in public grain or pay directly, of which about 70% choose to pay public grain, and 30% of farmers choose the direct payment system.

In recent years, the weather has been favorable, the yield per unit area of rice has reached a new high, and there is great pressure on public grain.

Although 30% of farmers choose not to pay public grain, in recent years, favorable weather and soaring temperatures have led to high rice yields. although the area of rice fields has not increased after 105 years, the output per unit area has increased significantly, reaching 1.94 million metric tons last year (107). The harvest of rice in the first period in history reached a new high, and the market supply increased by 100000 metric tons. In addition to the drop in grain prices, it also caused the explosion of public grain.

Zhuang Laoda, Deputy Director of Agriculture and Food, said that a total of 530000 metric tons of public grain were purchased in 107. at present, there are about 800000 metric tons of public grain, including 200000 tons of public grain for export in 107. the bid for export public grain is expected to be decided at the end of April, with a base price of about 19 yuan per kilogram (there is another discount for bulk purchase). The remaining hundreds of thousands of tons of public grain will be digested through rice for feed, processing, making wine, and so on.

Chuang Laoda said that due to the high international corn prices this year, about 200000 metric tons will be released to be converted into rice for feed, and the removal of chemical public grain will also provide a stable source of feed for operators.

In addition, the Council of Agriculture continues to encourage farmers to produce high-quality rice, increase the competitiveness of domestic rice, and actively advise grain merchants to strengthen overseas marketing, so as to regulate domestic rice circulation and stabilize market supply and demand. This year, the industry has been instructed to expand overseas marketing of 15500 metric tons with self-owned grain.

Photo courtesy of / Agriculture and Food Department

Note: Huang Zhaoxing, head of the grain storage and transportation team of the Agriculture and Food Department, said that at present, about 70% of rice farmers in Taiwan participate in the declaration system, while another 30% of rice farmers do not participate in the declaration, that is, they are unable to participate in the purchase of public grain at insured prices or pay directly. Take self-sale or hand it over directly to grain merchants for sale.