The reform of the market-oriented price mechanism of agricultural products is gradually forming.

The reform of the market-oriented price mechanism of agricultural products is gradually forming.
Emphasis on balancing food security and market efficiency
As the foundation of China's national economy, the process of agricultural product price reform has been affecting the "nerves" of the industry ".
Recently, it has been reported that the next policy reform direction of my country's agriculture is to shift from an increase in production to a balance of supply and demand and an increase in competitiveness. It will take two to three years to form a price formation mechanism for agricultural products based on market pricing.
Some industry observers believe that to improve the agricultural support and protection system, it is necessary to adjust the existing agricultural product price formation mechanism and the agricultural product collection and storage system. In principle, the market should form the price of agricultural products, and at the same time, the interests of farmers should be taken into account. Low grain prices will not only cause "low grain prices to hurt farmers", but also affect farmers' enthusiasm for growing grain. However, high food prices will cause "expensive rice to hurt farmers".
In fact, in the face of the dilemma of food prices, China's decision-makers have been exploring in the reform.
According to the reporter's understanding, China began to establish a minimum grain purchase price system and a temporary collection and storage system for important agricultural products in 2004 and 2008 respectively. The two systems have played an important role in increasing farmers' income, promoting production development, ensuring market supply and stabilizing price levels. According to data, the country's total grain output in 2015 was 621.435 million tons (1242.87 billion jin), an increase of 14.408 million tons (28.82 billion jin) over 2014, an increase of 2.4 percent, and China's grain output achieved "12 consecutive increases".
According to Zhu Sizhu, an analyst for the upgrading of the rice industry chain of the Ministry of Agriculture and the Jiangsu Academy of Agricultural Sciences, the agricultural support and protection policy centered on raising prices and increasing subsidies has played a key role. However, the current grain supply and demand situation and the global market situation have undergone phased changes. In an interview with a reporter from China Sankei Shimbun, Zhu Sizhu said that domestic and foreign grain prices are seriously upside down, production costs are rising year by year, and the "ceiling effect" of international prices is double squeezed, making the minimum purchase price and temporary purchase and storage policy as the representative. The market support policy is facing a major test.
"The subjective initiative of farmers and other market entities has declined, the policy control system has high storage capacity and serious losses, and the state's financial pressure has increased." Zhu Sizhu said.
With the deepening of marketization, the shortcomings of China's original grain storage system are gradually emerging, so what are the difficulties encountered in the price reform of China's agricultural products? Zheng Xuehao, research director of the China Enterprise Business School, said in an interview with the China Sankei News that, on the one hand, domestic agricultural prices are significantly higher than foreign countries, and agricultural prices are seriously distorted; on the other hand, the inventory pressure accumulated over the past few years is greater, leading to the current financial difficulties.
"The most important issue is the contradiction between food security and market efficiency. It is necessary to maintain a reasonable" degree "between efficiency and safety".
It is worth mentioning that no policy is absolutely perfect. In order for the policy to always play its positive role, it needs to change with the change of the situation.
Fortunately, China has begun to implement the reform of agricultural support and protection system on some important agricultural products. For example, in 2014, cotton in Xinjiang and soybeans in Northeast and Inner Mongolia implemented the target price reform system. In the summer of 2015, the reform of rapeseed price and purchasing and storage system was implemented in the Yangtze River Basin.
Some people in the industry pointed out that the current price system reform is conducive to giving full play to the role of the market in the allocation of resources, while improving agricultural protection policies. However, it still needs further improvement.
The reporter also learned in the interview that if the minimum grain purchase price system and the temporary collection and storage system of important agricultural products are simply abandoned in the reform, and the preconditions and implicit assumptions for the establishment of such a system are ignored, and the theories, methods and policies are not innovated, new problems may arise in the operation of the grain market or some problems that have been solved may reappear.
Zhu Sizhu believes that to reform and improve the price formation mechanism and purchasing and storage system of grain and other important agricultural products, it is necessary to adhere to the market-oriented reform orientation and protect the interests of farmers, and adopt the method of "implementing policies by variety and promoting gradually" to improve the market regulation system of agricultural products.
Regarding the pilot reform of the target price of cotton in Xinjiang and soybeans in Northeast China, Zhu Sizhu said that in accordance with the principle of market pricing and the separation of price compensation, the reform of the corn purchasing and storage system will be actively and steadily promoted, so that the price of corn reflects the relationship between market supply and demand, and comprehensive consideration Factors such as farmers' reasonable income, financial affordability, and coordinated development of the industrial chain have established a corn producer subsidy system.