Rice purchase price left unchanged for the first time, production costs expected to fall
China's rice purchase price has been left unchanged for the first time since 2008. According to analysis, with agricultural product prices currently declining across the board, the comparative returns of grain will not deteriorate significantly, and production costs such as fertilizer and land are expected to fall, all of which will safeguard farmers' interests.
On February 4, the National Development and Reform Commission announced the 2015 minimum purchase prices for rice, keeping them unchanged from 2014 levels. Information released by the NDRC shows that the minimum purchase prices for early indica rice (grade three, the same below), mid-to-late indica rice and japonica rice produced in 2015 are 135 yuan, 138 yuan and 155 yuan per 50 kg respectively.
The NDRC said that in setting this purchase price, it took comprehensive account of factors including production costs, market supply and demand, comparative returns, international market prices and industrial development.
According to the reporter's understanding, the minimum purchase price policy began in 2004. The state sets minimum purchase prices for rice; when market prices fall below the minimum price, grain enterprises designated by the state purchase at the minimum price to stabilize market prices.
From 2004 to 2007, the minimum purchase prices for early indica rice, mid-to-late indica rice and japonica rice were 70 yuan, 72 yuan and 75 yuan per 50 kg respectively. The minimum purchase prices for the three types of rice rose year by year starting in 2008, and by 2014 the increase was close to onefold.
Meanwhile, rice prices on the international market had already gone through several rounds of rises and falls, the inversion of domestic rice prices was severe, and there even appeared the phenomenon of “expensive rice, cheap grain”.
For this year's grain price reform, “stability” is the priority. Li Guoxiang said that not raising the rice price does not mean farmers' interests are harmed.
He explained that with agricultural product prices currently declining across the board, the comparative returns of grain will not deteriorate significantly, and production costs such as fertilizer and land are expected to fall, all of which will safeguard farmers' interests.