Three ministries warn grain speculators: disrupting the grain market can lead to criminal liability
The reporter learned from the National Development and Reform Commission and the State Administration of Grain that since the spring of this year, the abnormal rise in prices of some vegetables, grain and other agricultural and sideline products in China has been closely related to speculation by speculators. In multiple investigations jointly carried out in April by the National Development and Reform Commission, the Ministry of Commerce and the State Administration for Industry and Commerce, in response to problems such as malicious speculation in the Chinese medicinal herb Panax notoginseng, production and sales enterprises were sternly warned that “if price violations are found to seriously disrupt market price order and constitute a crime, criminal liability shall be pursued in accordance with the law.”
In addition, led by the National Development and Reform Commission, multiple state departments are actively coordinating to promote the establishment of a dynamic adjustment mechanism in which the minimum living allowance, minimum wage and basic pension are compatible with the price level, so as to prevent the living standards of low-income groups from declining because of price increases.
An official from the Agricultural Economy Department of the National Development and Reform Commission told this newspaper that starting in March, the commission found that the prices of grain varieties such as japonica rice, corn and mung beans, agricultural and sideline products such as garlic and potatoes, and Chinese medicinal herbs such as Panax notoginseng had risen considerably. In April, it dispatched multiple investigation teams to go deep into the main producing areas and main sales areas of the price-increased varieties to learn about the production, supply, circulation and price changes of the relevant commodities.
Based on analysis of the situations grasped by the various investigation teams, the above agricultural products (000061) were affected both by adverse weather such as the drought in the southwest and continuous low temperatures in the north, and were also related to practices by a very small number of operators such as fabricating and spreading false information, malicious hoarding, colluding with one another to manipulate market prices, monopolizing sources of goods and blocking circulation channels.
Specifically regarding garlic, which people generally reported as having the largest price increase, the aforementioned official from the Agricultural Economy Department analyzed that this was mainly because prices were too low in previous years, leading to a sharp decline in last year's planting area, and supply became increasingly tight after the Spring Festival. As new-season garlic matures and reaches the market, garlic prices will fall back relatively quickly; the price increases of agricultural products (000061) such as mung beans and vegetables, and Chinese medicinal herbs such as Panax notoginseng, were mainly affected by abnormal climate.
An analyst from Dongfang Aige Agricultural Consulting Co., Ltd. said that the main producing areas of Chinese medicinal herbs such as Panax notoginseng are in the southwestern part of our country. Due to severe drought in the earlier period, output declined. The rise in mung bean prices includes a seasonal factor: every year in April and May, the price of mung beans rises because many people cook mung bean soup. Many sellers also use this as a theme for speculation.
In response to illegal phenomena discovered in the investigations, such as malicious speculation and hoarding for profiteering, not long ago the National Development and Reform Commission, together with the Ministry of Commerce, the State Administration for Industry and Commerce and other departments, went to Guangdong, Yunnan and other provinces and municipalities, requiring local price bureaus to cooperate in handling the problem of rising Panax notoginseng prices. Major local Panax notoginseng distributors and production enterprises were all sternly warned that “if price violations are found to seriously disrupt market price order and constitute a crime, criminal liability shall be pursued in accordance with the law.”
Regarding the recent price increases of japonica rice and corn, an official from the State Administration of Grain said that evidence currently shows that the recent rise in corn prices is related to blind grain hoarding by feed processing enterprises and speculation by domestic and foreign futures traders. The State Administration of Grain is closely monitoring the latest developments and will take measures to crack down when necessary.
The price increases in grain, vegetables and other agricultural and sideline products that have continued for several months have increased the living pressure on low-income families. The aforementioned official from the Agricultural Economy Department of the National Development and Reform Commission said that what the government is currently most concerned about are those low-income people most affected by price fluctuations. “When the prices of grain and vegetables are both rising, those receiving the minimum living allowance and those earning the minimum wage will inevitably have their living standards greatly affected, so at this time the government should give them more subsidies.”
It is reported that, in order to safeguard the basic living needs of low-income people, led by the National Development and Reform Commission, multiple state departments are actively coordinating to promote the establishment of a dynamic adjustment mechanism in which the minimum living allowance, minimum wage and basic pension are compatible with the price level. It is also hoped that all provinces and autonomous regions can establish and implement this system as soon as possible, thereby ensuring that the living standards of low-income groups do not decline because of price increases.
At present, 7 provinces including Zhejiang, Jiangsu and Shandong have already established a dynamic adjustment mechanism linking price increases with minimum living security standards, minimum wage standards and retirement pension standards. Last year Shandong Province also adjusted its minimum living allowance standard according to changes in prices.