How to safeguard food security and farmers' interests? Nie Zhenbang proposes multiple measures

——Interview with Nie Zhenbang, President of the China National Association of Grain Sector

The State Council executive meeting held on November 11 determined measures to stabilize grain production and increase grain-growing income, emphasizing the safeguarding of food security and farmers' interests. Regarding some hot topics in current grain production, Economic Daily invited authoritative experts for in-depth interpretation. At present, autumn grain procurement is proceeding steadily and orderly in various regions, but there are also some problems that have aroused widespread public concern, some of which bear on national food security and farmers' interests. To this end, our reporter went to the major grain-producing areas in Northeast China to carry out research. Starting today, this page will publish the research reports sent back by our reporters.

China's grain output has increased year after year, strongly supporting economic and social development and the improvement of people's livelihoods, but at the same time it has also brought problems such as a large increase in inventory and falling grain prices. Currently it is the time of autumn harvest and winter planting. How can farmers' interests and their enthusiasm for growing grain be protected, and national food security be safeguarded? Our reporter conducted an exclusive interview with Nie Zhenbang, President of the China National Association of Grain Sector, on this topic.

Reporter: While China's grain harvest has been bumper year after year, problems such as high grain inventory and falling grain prices have aroused widespread concern. What do you think are the reasons for these problems?

Nie Zhenbang: With the support of policies to strengthen agriculture, benefit farmers and enrich rural areas, China's grain output has increased year after year since 2004. In addition to meeting domestic market consumption demand, a considerable portion of the grain has replenished inventories. At the same time, due to the inversion of domestic and international grain prices, a large amount of grain and substitutes were imported, while grain demand did not increase correspondingly. The combination of these factors has resulted in the current large increase in grain inventory and downward trend in grain prices.

Reporter: What measures do you think should be taken to do a good job in autumn grain procurement and protect farmers' interests and their enthusiasm for growing grain?

Nie Zhenbang: The State Council executive meeting held recently specifically studied the problems existing in grain production and circulation, and put forward a series of effective policy measures. After these measures are implemented, from an overall perspective, there will be no problem of farmers finding it “difficult to sell grain”, and no problem of “IOUs”. To solve the problem of insufficient storage capacity, the relevant state departments have issued a plan for the construction of 129.7 billion jin of storage facilities, a plan for the maintenance and renovation of 240 billion jin of dangerous and old warehouses, and a plan for the construction of 30 billion jin of grain canopy storage; the central government has allocated 14.8 billion yuan to accelerate the construction of grain storage facilities; it has also issued a plan for 60 billion jin of open-air grain storage and issued a cross-provincial warehouse transfer plan to the main grain-selling areas.

In order to do a good job in autumn grain procurement, the relevant state departments also need to take more effective measures. Relevant enterprises should speed up the emptying of warehouses and construction of new ones, accelerate the implementation of the cross-provincial warehouse transfer plan issued by the state, and replenish grain inventories in the selling areas; actively make good use of idle social storage facilities, and study and formulate policies to encourage large grain processing enterprises to enter the market for procurement; actively and steadily digest inventories, and for some grain that has been stored for a relatively long time, it can be sold in a targeted manner to processing enterprises so as to minimize the impact on the grain circulation market; eligible temporary storage corn should be converted into state reserves, allowing this portion of grain to withdraw from the circulation market.

Reporter: Do you think there will be sharp fluctuations in grain prices in China at present?

Nie Zhenbang: At present, China's grain market is generally operating steadily, and generally there will not be sharp fluctuations in grain prices. First, since the reform of the grain circulation system, China has established a very complete macro-control system for grain, with ample central and local grain reserves and efficient control measures, which can ensure grain market supply and stabilize the grain market.

Second, this year wheat continued to implement market-support procurement, and the procurement and storage work has been completed. In the main rice-producing areas, market-support procurement continues to be implemented. Although the temporary storage price for corn has been adjusted, temporary storage procurement is still implemented, which will play a protective role in farmers' enthusiasm for growing grain. This State Council executive meeting clearly required reforming the grain price formation and procurement-storage mechanism, improving the subsidy policies for corn and soybeans, and continuing to implement the minimum purchase price policy next year for ration varieties such as wheat and rice. This will help stabilize farmers' planting expectations and mobilize their enthusiasm for growing grain.

Third, the state has also adopted measures to strictly control imports, strengthened the management of non-quota grain imports, and effectively controlled grain imports.

Reporter: How do you think the relationship between grain production, inventory and consumption should be handled?

Nie Zhenbang: To solve the problems in grain production and circulation, feasible measures must be taken to promote the coordinated development of grain production and demand, give full play to the decisive role of the market in resource allocation, respect market laws, and better play the government's role in macro-control.

Adjusting and optimizing the agricultural planting structure is an effective way to solve China's grain problems at present. From the current production level, the planting area of wheat and rice should be guaranteed and stabilized to ensure a basic balance between the production and demand of rice and wheat; the corn planting area should be adjusted and optimized, and corn-soybean rotation should be promoted. The pilot scope of “grain-to-feed” should be expanded to reduce the corn planting area. Taking advantage of the favorable condition of ample national grain inventory, the conversion of cropland back to forest can continue to be restored and expanded.