SCIO briefing on safeguarding China's food security and supply
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E-mail China.org.cn, June 6, 2023
ThePaper.cn:
This year's "No. 1 central document" proposes to continue increasing the minimum purchase price of wheat and to reasonably set the minimum purchase price of rice. May I ask what considerations are behind this decision? Thank you.
Lu Jingbo:
This is a question of great concern to farmers nationwide. Allow me to provide a brief answer.
Over the years, the CPC Central Committee and the State Council have introduced a series of policies and measures to support grain production and safeguard the interests of grain farmers. The minimum purchase price policy is a significant institutional arrangement. Since 2004, the government has progressively implemented the minimum purchase price policy for rice and wheat in major production areas. This policy has effectively safeguarded and stimulated farmers' enthusiasm for grain production, promoting the stable development of grain production in China.
Since the 18th CPC National Congress, relevant government departments have actively promoted the reform of the grain procurement and storage system to adapt to changes in the market situation. They have adhered to and improved the policy of minimum purchase prices for wheat and rice. The overall approach is to uphold the principles of market-oriented reform while ensuring the protection of farmers' interests. This involves setting minimum purchase price levels reasonably and fully leveraging the decisive role of the market in allocating grain resources.
In recent years, various unpredictable and unforeseen factors have intertwined and accumulated on a global scale, leading to frequent and significant fluctuations in the international food market. To stabilize grain production and strengthen the foundation of food security, China's relevant departments have considered factors such as grain production costs, market supply and demand, domestic and international prices, and industry development. They have appropriately increased the minimum purchase prices for wheat and rice. Specifically, the minimum purchase price for wheat has risen for three consecutive years, and early indica rice has seen an increase for four consecutive years. Meanwhile, the minimum purchase price for mid-season and late-season indica rice previously increased for three consecutive years. This year, the minimum purchase price for wheat is set at 1.17 yuan per jin, and for early indica rice, it is 1.26 yuan per jin, both increasing by 0.02 yuan compared to the previous year. The minimum purchase prices for mid-season and late-season indica rice are 1.29 yuan per jin, and for japonica rice, it is 1.31 yuan per jin, remaining the same as in the previous year. These arrangements fully demonstrate the high importance attached by the CPC Central Committee and the State Council to ensuring grain production, which is conducive to safeguarding the interests of grain farmers, strengthening their confidence in grain production, and promoting stable production and supply of food, especially grain, as well as ensuring the stable operation of the market.
Going forward, we will conscientiously implement the policy of minimum purchase prices. We will promptly approve the initiation of government-backed purchases in eligible regions, strengthen supervision and guidance for relevant localities and enterprises, further leverage the stabilizing role of the policy, and resolutely ensure the bottom line that grain farmers don't have to worry about the sales. Thank you.
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