National temporary corn purchase demand: overall purchasing and storage capacity can meet requirements this year
On November 19, at the “News Briefing on Current Grain-Related Policies” jointly held by the National Development and Reform Commission, the Ministry of Agriculture, the Ministry of Finance, the National Grain Administration, the Agricultural Development Bank of China, and Sinograin, a relevant person in charge of Sinograin stated that overall it can meet the needs of this year's national temporary corn purchase and storage.
80 million tons of purchasing and storage capacity for this year's temporary corn storage
Amid increasing downward pressure on economic operation, generally loose grain supply, persistently high inventories, and tight warehouse capacity, this year's autumn grain purchase will face a more complex situation and greater risk pressure.
In accordance with national policy requirements, Sinograin, together with relevant parties, strictly selected entrusted purchase warehouse points. In addition to meeting basic requirements such as grain purchase qualifications, bank account opening, storage facilities, and no violations or disciplinary actions within three years, the head office further imposed four requirements on entrusted purchase and storage warehouse points, including warehouse capacity of no less than 10,000 tons, provision of a bank credit certificate of AA- (medium) or above, and provision of a credit certificate from the People's Bank of China with no adverse records.
At present, 2,958 corn temporary storage purchase warehouse points have been arranged in Northeast China. Among them, there are 1,260 warehouse points (including leased warehouse points) of Sinograin directly affiliated enterprises.
In addition, in order to alleviate the shortage of effective warehouse capacity in Northeast China, maximize the purchasing and storage capacity of Sinograin directly affiliated enterprises, and effectively control grain storage and management risks, Sinograin plans to build new fireproof 1,000-ton granaries with a capacity of 30 million tons in Northeast China, which will effectively play a role in this year's autumn grain purchase. This measure can greatly alleviate the contradiction of insufficient warehouse capacity.
It is worth noting that since the beginning of this year, the National Grain Administration, in coordination with the National Development and Reform Commission, has implemented the deployment of the State Council, actively innovated investment and financing mechanisms, and adopted various forms to support and guide enterprises in building warehouses.
In June 2014, the 52nd executive meeting of the State Council determined that 100 billion jin of grain storage facilities would be built in 2014 and 2015, and listed grain storage facility construction as a national key project. This was mainly taken into consideration because of bumper grain harvests, relatively low international grain prices, a large increase in domestic grain inventories, and severely insufficient storage capacity.
As of now, the 100 billion jin warehouse construction project has arranged a total of 9.285 billion yuan in central budgetary investment, with a construction scale of 108.3 billion jin issued. The additional 4 billion yuan in central budgetary investment in July this year has a construction scale of 21.4 billion jin issued, mainly arranged for Sinograin, as well as for warehouse construction in the three provinces and one region of Northeast China, where the warehouse capacity gap is relatively large, and in provinces such as Guangdong and Zhejiang, where the task of increasing reserves is relatively heavy.
At present, the above central investment plans have all been issued. Among them, the total warehouse capacity under construction in the three provinces and one region of Northeast China is 59.5 billion jin. Most provincial investment breakdown plans have been implemented in specific projects, and all localities are actively carrying out construction. It is expected that about 100 billion jin of warehouse capacity can be completed and put into use during this year's autumn grain purchase process.
Central finance allocated 37.2 billion yuan to reward major grain (oil)-producing counties
In terms of autumn grain purchase, in 2015 the central finance allocated about 15 billion yuan to support the construction of grain storage facilities and the maintenance and renovation of “dangerous warehouses and old depots”; clarified the fiscal subsidy policy for cross-provincial warehouse relocation and simple storage facility construction, intensified efforts to free up warehouses and reduce inventories, and effectively alleviated warehouse capacity pressure in Northeast China. Interest and expense subsidies for central reserve grain and oil, minimum purchase price grain and oil, and temporary reserve grain and oil were allocated in a timely and full manner to support Sinograin and other entities in comprehensively opening purchase outlets and ensuring that all grain that should be purchased is purchased.
In addition, investment in major grain-producing areas has also been continuously increased, and rewards for major grain-producing counties have been strengthened. In 2015, the central finance arranged 37.2 billion yuan in reward funds for major grain (oil)-producing counties, an increase of 2.1 billion yuan over the previous year. Among them, 11.45 billion yuan was arranged for the three provinces and one region of Northeast China, accounting for 30.8% of all reward funds. Support for risk funds in major grain-producing areas was stabilized. The grain risk funds of 13 major production areas, including the three provinces and one region of Northeast China, are fully borne by the central finance. Recently, all central fiscal subsidies for the 2016 grain risk fund were issued to local governments in advance. Among them, 6.22 billion yuan in grain risk funds was issued to the three provinces and one region of Northeast China to support the accelerated development of new business entities such as large-scale growers, promote the adjustment of planting structure, and improve the efficiency of agricultural development.
Third, steadily promote the reform of the price formation mechanism for grain and other agricultural products. In 2015, the central finance promptly allocated target price subsidy funds for soybeans and cotton, gradually realizing that soybean and cotton prices are mainly formed by the market, and farmers' interests have been better protected. It was clarified that the target price subsidy policy for soybeans and cotton will continue to be implemented, and local governments were guided to improve subsidy operation methods and improve fiscal subsidy efficiency. Continue to support the implementation of the minimum purchase price policy for wheat and rice, stabilize grain production, and promote farmers' income growth.
Finally, the central finance has issued in advance 201.1 billion yuan for 2016 agricultural support and protection subsidies, agricultural machinery purchase subsidies, agricultural technology promotion and service subsidies, modern agricultural production development, farmland water conservancy facility construction subsidies, and agricultural disaster prevention and yield increase funds, to support farmers in carrying out winter and spring agricultural production, guide the development of various forms of appropriately scaled operations, improve the level of agricultural mechanization and agricultural science and technology support capacity, and strengthen farmland water conservancy infrastructure construction.