What exactly lies behind the grain subsidies?

On August 9, an article on China Economic Net titled "Heilongjiang Grain Subsidy Chaos Draws Questions  Over a Thousand Rice Mills Forced to Suspend Production" reported on the implementation of the administrative measures for subsidies to rice processing and corn deep-processing enterprises in Heilongjiang Province that competitively purchase and process policy-oriented grain. A reporter's investigation found that more than half of the enterprises did not meet the subsidy criteria. Among the 102 rice processing enterprises included in the subsidy scope, as many as 58 had insufficient production capacity, more than half, among which 13 had gone bankrupt or completely suspended production, and 7 had no processing equipment and had not yet started production. (August 9, China Economic Net)

According to reports, on April 15 of this year, the Heilongjiang Provincial Department of Finance, the Grain Bureau and the Agricultural Development Bank jointly issued the "Administrative Measures of Heilongjiang Province for Subsidies to Rice Processing and Corn Deep-Processing Enterprises That Competitively Purchase and Process Policy-Oriented Grain" (hereinafter referred to as the "Measures"). The document stated: in order to promote the accelerated development of grain deep-processing enterprises in Heilongjiang Province, with the approval of the provincial government, rice and corn deep-processing enterprises in the province with an annual processing capacity of 100,000 tons or more can receive a government subsidy of 200 yuan per ton, and grain processing enterprises that competitively purchase state-reserved grain receive a subsidy of 200 yuan per ton of rice. For Heilongjiang, a major grain-producing province, this subsidy is considerable in both strength and standard. If it were truly delivered where it is needed, the effect on enterprises and farmers would be very significant. But in the reporter's visits and investigation, it was found that this grain subsidy is not as we expected, and many questions lie behind it:

First, how was the list for rice processing subsidies determined? The reporter visited enterprises on the subsidy list, of which 58 did not meet the subsidy criteria, accounting for 57% of the total subsidized enterprises. Some enterprises had even gone bankrupt and closed down, and some were still under construction. This writer cannot help but ask how such a list was determined. Where exactly the problem lies, the Grain Bureau staff specifically responsible for this work should know very clearly. The reporter interviewed leaders of the county grain bureau and the provincial grain bureau. The county said the list was set directly by the province, while the province said it was a list reviewed and submitted by the county. Whoever included these non-compliant enterprises in the subsidy list, it is hoped that the relevant departments can thoroughly clarify the truth of the matter.

⟦NL> Second, where did the subsidy funds go? After those bankrupt and closed enterprises received these huge subsidy payments, where were the funds used? Is there also a certain flow of funds and chain of interests behind this?

Third, why did qualified enterprises not receive subsidies, while bankrupt, suspended, closed and yet-to-be-built enterprises received them? This writer believes there must be violations of discipline and law here. If the relevant responsible persons were subjectively "negligent," it could constitute crimes such as dereliction of duty and malfeasance; if the relevant responsible persons were subjectively "intentional," it could constitute crimes such as embezzlement and bribery.

Fourth, what is on the list for corn deep-processing subsidies? The report only mentioned the subsidy situation for rice processing enterprises, while the situation of corn deep-processing subsidies had not yet begun to be investigated. For Heilongjiang Province, the corn planting area and grain output should be higher. It is hoped that the relevant departments should publicly announce the list for corn deep-processing, so that subsidies truly reach the intended recipients and can achieve the effect of driving enterprise development and raising farmers' incomes.