State Administration of Grain strengthens management of grain purchase fund raising and payment

In order to further strengthen the management of grain purchase fund raising and payment, and to eliminate the occurrence of “issuing IOUs” to farmers due to inadequate fund raising and untimely payment in grain purchase activities, the State Administration of Grain recently issued the Interim Measures for the Management of Grain Purchase Fund Raising and Payment.

The Measures specify that in policy-oriented grain purchase activities, the leasing enterprise must send personnel to purchase and store grain directly, and bear responsibility for grain quality, grade acceptance and purchase fund payment. Policy-oriented grain purchase funds must be operated in a closed loop, used exclusively for their designated purpose, and strictly prohibited from being diverted for other uses.

Based on vouchers such as purchase invoices and settlement statements, grain collection and storage depots shall pay grain payments directly to grain-selling farmers in a timely, full and on-the-spot manner, “grain in one hand, money in the other, settlement in cash”, strictly prohibiting “issuing IOUs”, and strictly prohibiting withholding or paying taxes, fees and other payments on behalf of others.

The Measures require that fake leasing of warehouses while actually entrusting purchases is strictly prohibited, and the leasing enterprise shall not allocate policy-oriented grain purchase funds to the leasing company for it to pay grain-selling payments on its behalf. If problems such as misappropriation, diversion, or “issuing IOUs” arise due to fake leasing of warehouses while actually entrusting purchases, the responsibility of the main person in charge of the leasing enterprise and relevant personnel shall be pursued.

The Measures state that active efforts shall be made to explore and develop grain financing guarantee and other businesses, strive to solve the financing difficulties of grassroots grain enterprises, support enterprises in enhancing vitality and invigorating operations, and lay the foundation for safeguarding grain purchases and promoting income growth for grain-growing farmers.