Ministry of Commerce: The national backbone network for agricultural product circulation is gradually showing results
Summary: Regarding the construction of the national backbone network for agricultural product circulation, including the development of pilot projects such as public-interest wholesale markets for agricultural products and cross-regional agricultural product circulation infrastructure, Shen Danyang said that overall these efforts have been progressing smoothly and their results are gradually emerging.
The Ministry of Commerce held a press conference on the 20th to brief on China's commercial operations in September 2015 and answer reporters' questions.
Shen Danyang explained that carrying out the construction of the national backbone network for agricultural product circulation, the development of public-interest wholesale markets for agricultural products, and pilot projects for cross-regional agricultural product infrastructure was mainly aimed at enhancing the capacity for macro-control and safeguarding people's livelihood. On the one hand, agricultural products should be sold more smoothly and more tangibly. On the other hand, ordinary people should be able to buy them more conveniently and more affordably. The Ministry of Commerce, together with the Ministry of Finance, began this work in 28 provinces last year and continued to implement it this year. It mainly uses methods such as government equity investment and the establishment of an agricultural product circulation industry development fund to guide and drive social capital into the construction of public-interest wholesale markets for agricultural products and cross-regional cold-chain circulation infrastructure for agricultural products.
Shen Danyang also said that, judging from implementation, the results have been satisfactory, shown in three aspects: First, it has driven social investment. The Ministry of Commerce and the Ministry of Finance arranged 5 billion yuan in central government fiscal funds, driving more than 15 billion yuan in social investment.
Second, it has innovated investment and financing mechanisms. The traditional way of providing fiscal support for the construction of the agricultural product market system was "rewarding instead of subsidizing," whereas now fiscal funds are adopted as equity investment, which helps guide the formation of a long-term mechanism for sustained development.
Third, it has brought into play the exploratory and demonstrative role of local areas. For example, pilot areas for the construction of public-interest wholesale markets for agricultural products such as Shanghai and Ningxia extended public-interest market construction from wholesale to retail, advancing the construction of local public-interest retail networks. These are also an extended effect.