2011 Wheat Minimum Purchase Price Implementation Plan Issued

Fa Gai Jing Mao [2011] No. 1066

To the development and reform commissions, finance departments, agriculture departments, grain bureaus, price bureaus, and Agricultural Development Bank branches of all provinces, autonomous regions, and municipalities directly under the Central Government, and relevant branches of Sinograin:
  In order to implement the grain minimum purchase price policy, do a good job in this year's wheat purchase work, and protect the interests of grain farmers, upon approval by the State Council, the "2011 Wheat Minimum Purchase Price Implementation Plan" is hereby issued to you, and the following notice is given on doing a good job in wheat purchase work:
1. Clarify the minimum purchase price level, implementation regions, and time period. The 2011 wheat minimum purchase price level is 0.95 yuan per shijin for white wheat (national standard grade 3, the same below), and 0.93 yuan per shijin for red wheat and mixed wheat. The implementation regions are the 6 main producing provinces of Hebei, Jiangsu, Anhui, Shandong, Henan, and Hubei. The implementation period is from May 21, 2011 to September 30, 2011.
  2. Improve the plan activation mechanism. During the plan implementation period, taking the county as a unit, when the local wheat market price is below the minimum purchase price for 3 consecutive days, the Sinograin branch, together with the provincial price, grain, agriculture, and Agricultural Development Bank and other relevant departments, shall verify and confirm it, report to Sinograin headquarters for approval to activate the plan within the relevant city and county or the whole province, and report to the relevant national departments for the record. According to requirements, all entrusted storage depots shall post the national minimum purchase price and purchase wheat delivered by farmers in the above main wheat producing areas.
  3. Strengthen the qualification review of entrusted storage depots. Sinograin and relevant local departments shall strengthen the review and re-examination of the qualifications of entrusted storage depots. Entrusted storage depots shall meet conditions such as having grain purchase qualifications, having an account opened with the Agricultural Development Bank, and having the necessary inspection and testing equipment and personnel. In order to give full play to the main channel role of state-owned enterprises, state-owned and state-controlled grain enterprises shall be given priority as entrusted storage depots. In provinces where the filing of grain and oil storage units has already been carried out, entrusted storage depots shall have completed the filing work in accordance with regulations. When determining entrusted storage depots, overall consideration shall be given to Sinograin directly affiliated depots, enterprises affiliated with COFCO Corporation and China Hualiang Logistics Group Corporation, and local state-owned and state-controlled grain depots, so as to make full use of existing storage resources and ensure grain storage safety.
  4. Implement the responsibilities of the main body responsible for policy implementation. Sinograin, as the main body responsible for implementing the state-entrusted minimum purchase price policy, shall bear overall responsibility for the quantity, quality, inventory management, and sales and outbound delivery of wheat purchased under the minimum purchase price policy, guide and urge entrusted purchasing enterprises to strictly implement the purchase quality and price policy, neither suppressing grades and prices to harm farmers' interests nor raising grades and prices to disrupt market order; and shall implement management responsibilities at each level, establish a regular inspection system, and ensure that the quantity of grain in minimum purchase price inventory is true, the quality is good, and storage is safe. Relevant Sinograin branches and their directly affiliated enterprises shall, in accordance with relevant regulations, promptly review and accept the varieties, quantities, and quality grades of minimum purchase price wheat purchased into storage, and shall be responsible for the acceptance results. If it is found during acceptance that the quantity and quality indicators of wheat entering storage do not match those marked on the purchase code sheets and other original vouchers, the minimum purchase price purchase progress and inventory statistics shall be promptly reduced, and all cost and interest subsidies shall be recovered. For those passing acceptance, quality files for entrusted storage depots shall be established, and storage shall be carried out in separate warehouses by variety and grade. If, during the sale of minimum purchase price wheat, it is found that the actual quantity and quality of inventory grain do not match the sale targets, the losses caused shall first be compensated by the Sinograin directly affiliated enterprise bearing regulatory responsibility, and the cause shall be identified and the responsible leaders and relevant personnel shall be held accountable.
  5. Increase supervision, inspection, and punishment efforts. Local grain and price competent departments shall adopt methods such as random inspection, patrol inspection, and cross inspection to further strengthen supervision and inspection of the implementation of the minimum purchase price policy. In accordance with the "Grain Circulation Management Regulations" and other laws and regulations and the requirements of this plan, severely investigate and deal with illegal and non-compliant acts such as suppressing grades and prices, raising grades and prices, inconsistency between quality and price, falsely reporting progress, obtaining subsidies through “circulating grain”, and fraudulently obtaining credit funds. Once illegal and non-compliant acts are discovered, the relevant departments and units shall be instructed to immediately cancel the enterprise's qualification for policy-oriented grain and oil purchase and storage, and hold the main persons in charge of the relevant units and enterprises and relevant personnel accountable. Supervision and inspection efforts shall also be increased for other operators engaged in grain purchase, their business behavior shall be strictly regulated, and purchase order shall be effectively maintained.
6. Strengthen the organization and leadership of purchase work. All relevant localities and departments shall attach great importance to the summer grain purchase work, pay close attention to changes in the wheat market price, make careful arrangements, cooperate closely, conscientiously do all preparatory work and organize implementation of this year's wheat minimum purchase price implementation plan, guide various market entities to enter the market in an orderly manner to purchase new grain, promptly coordinate and resolve contradictions and problems arising in the purchase process, and ensure the smooth progress of purchase work and the stable operation of the wheat market.
  Special notice is hereby given.

Attachment: 2011 Wheat Minimum Purchase Price Implementation Plan

National Development and Reform Commission
Ministry of Finance
Ministry of Agriculture
National Grain Bureau
Agricultural Development Bank of China
Sinograin Corporation

May 20, 2011