Grain price situation is complex, affected by 5 factors

Comprehensive Xinhua News Agency report, November 4 - This year, transaction prices in China's grain market have been relatively low, and the temporary storage price for corn was lowered for the first time. In response, Chen Xiwen, deputy head and director of the Office of the Central Rural Work Leading Group, said on the 4th that five factors have made the current grain price situation complex.

Chen Xiwen said that day at a press conference held by the State Council Information Office that in recent years China's domestic grain output has continued to grow, the quantity of imported grain has continued to grow, and grain inventories have continued to grow, and this situation has to a greater extent been brought about by economic globalization. He said that there are many factors behind such a complex grain price situation: first, the competitiveness of China's agriculture itself is insufficient; second, our protection policies have kept grain prices rising; third, international grain prices have fallen; fourth, the decline in global energy prices has led to a decline in freight prices; and fifth, the strong RMB exchange rate has stimulated grain imports.

“Lowering the temporary storage price for corn also took the current complex grain price situation into account.” Chen Xiwen said, “In the future, prices and subsidies will be separated, with prices mainly formed by the market. If market prices are too low, the government will adopt appropriate policies to directly subsidize farmers.”

At the State Council Information Office press conference that day, Han Jun, deputy director of the Office of the Central Rural Work Leading Group, said that farmers' cooperatives are allowed to carry out mutual fund assistance, but it must be strictly limited to within the community.