Rising and falling agricultural product prices do not mean the government stays out; NDRC responds

The State Council Information Office held a press conference at 10 a.m. on October 21 in the press conference hall of the State Council Information Office. Xu Kunlin, director of the Price Department of the NDRC, said that so far, after deregulating the tobacco leaf purchase price, agricultural product prices are completely formed by the market, with no government pricing items. But deregulation does not mean the government stays out; it must adopt various means and measures to stabilize agricultural production, protect farmers' enthusiasm for production, and increase farmers' income. At present, a minimum purchase price policy is implemented for rice and wheat.

Xu Kunlin said that a target price subsidy method is implemented for cotton and soybeans. For corn, a temporary purchase and storage price policy is still implemented, and a market price regulation plan has also been formulated for live pigs. Cotton production areas are mainly in Xinjiang; generally speaking, prices follow the market and are formed through competition. When market prices are too low and farmers' income is affected, the state adopts a target price subsidy method so that they can have a certain return on the basis of covering costs. At present, the Xinjiang cotton target price pilot is generally quite successful, and local cotton farmers very much welcome it. The soybean target price pilot is also being advanced and is being continuously improved.