Difficulty selling grain after a bumper harvest is a stubborn problem that must be solved by continuing to deepen reform

“It is suggested that the state, according to the different conditions of major grain-producing provinces, promptly launch the minimum purchase price policy when domestic market circulation is sluggish, especially in major grain ration-producing areas, to ensure that farmers can sell their grain in a timely manner and that grain quality does not decline, so that after a bumper harvest farmers can enjoy the state's preferential policies and their enthusiasm for growing grain can be raised.” The person who said this is Li Zhongjun, a deputy to the National People's Congress.

As a grassroots deputy from a major grain-producing area, Li Zhongjun also serves as director of the Jiansanjiang Directly Subordinate Depot of China Grain Reserves. How to solve the problem of farmers finding it difficult to sell grain after a bumper harvest has always been what he values most. Around how to free the broad masses of farmers from the suffering of difficulty in selling grain, he once put forward several suggestions, including that the grain circulation system calls for Chinese characteristics.

Not long ago, Li Zhongjun attended the tenth session of the Standing Committee of the Twelfth National People's Congress in Beijing as a non-voting attendee. He read the report of the National Development and Reform Commission on the implementation of the national economic and social development plan since the beginning of this year carefully several times, and was greatly encouraged, especially when he saw the state's grain policy. Turning to page 14 of the report, Li Zhongjun told a reporter from Legal Daily that the report clearly proposed ensuring another bumper harvest of autumn grain, earnestly doing a good job in all preparatory work for autumn and winter, implementing the policies on the minimum purchase price and temporary storage purchase price of grain, strengthening the construction of grain storage facilities, and solving the problem of farmers finding it difficult to sell grain after a bumper harvest.

Speaking of the problem of difficulty in selling grain after a bumper harvest, Li Zhongjun told the reporter that at present all kinds of crops in Heilongjiang Province are growing well and a bumper harvest is in sight, but difficulty in selling grain is still the main contradiction in major grain-producing areas. Because commercial grain is lower than the state temporary storage price, market circulation is sluggish, and the enthusiasm of many farmers for growing grain has been affected. To truly solve this problem at present, Li Zhongjun believes it is necessary to deepen reform, adopt various measures, and encourage mixed-ownership operations.

Li Zhongjun suggested that the state implement relevant preferential policies in major agricultural producing areas and agriculturally developed areas, encourage more whole-industry-chain agricultural operations, and let capable private capital provide supporting funds for local state-owned grain depots, increase storage capacity, and store and reserve more for the state. Especially under the current circumstances in our country of very tight land, consecutive bumper harvests in agricultural production, and insufficient local fiscal supporting funds, Li Zhongjun believes it is particularly important to make full use of non-state-owned enterprises to play a social role. “After several years of rapid development, the construction scale of non-state-owned enterprises has taken shape. Now in Heilongjiang policy grain is higher than commercial grain, processing enterprises have all stopped work, and some idle land can be built into standard storage capacity to provide storage for Heilongjiang's abundant grain harvest. Moreover, it no longer occupies new state land or excessive state fiscal funds. It is a good thing that kills two birds with one stone.” Li Zhongjun said.

“As far as I know, through auctioning grain in grain wholesale markets, the transaction volume of rice in 2012 and 2013 was not large, with each auction averaging about 5 percent, and it did not truly solve the problem of emptying warehouses and rotating stock.” Li Zhongjun said that in recent years, because the storage capacity of local state-owned grain depots in major grain-producing areas is old, a number of non-state-owned enterprises with complete new supporting facilities have built relatively large storage capacity, with investment even exceeding that of local state-owned grain depots. These storage facilities not built by the state also play a storage role, but most are leased to enterprises directly under the provincial grain bureau and to China Grain Reserves enterprises. This has created a situation in which non-state-owned enterprises do not enjoy the same treatment as local state-owned grain depots, cannot better play a greater role in driving the economy, have weakened motivation to continue investing on their own to improve grain storage facilities, and bring adverse effects to ensuring grain security.

Li Zhongjun believes that the launch time of the state minimum purchase price should be moved earlier. In 2013, the moldy kernels of corn exceeded the standard, with most moldy kernels at around 10 percent. Because the quality was not up to standard, they could not enter the grain depots, and farmers could only sell to alcohol plants or feed plants. Farmers did not truly enjoy the state's preferential agricultural policy after an abundant grain harvest, directly affecting farmers' income.

According to Li Zhongjun, the launch period for policy grain purchase in our country has continued from many years ago. For rice it is November 16 each year, and for corn it is about early or mid-December. Because modern large-scale agricultural machinery is used in agricultural production, the main producing areas have now achieved mechanized operations from sowing, field management, and autumn grain harvesting, and the time autumn grain comes to market has advanced year by year. However, market circulation is sluggish, and after harvesting farmers do not have the conditions for drying to reduce moisture or for preservation. In addition, affected by temperature and other factors, grain harvested early can only be placed in the fields waiting for the state to launch its policy. If the purchase policy cannot be launched in time, farmers can only turn the grain over themselves in the fields to prevent temperature rises or soaking by rain, causing an excessively heavy burden, and improper storage can also cause the grain to deteriorate.

Li Zhongjun also suggested accelerating the construction of a new type of agricultural operation system and developing various forms of scale operations. “Due to continuous social development and progress and the improvement of modern agricultural science and technology, some new-type operating entities with whole-industry-chain agricultural models are taking shape. Such as farmers' cooperatives and village and township banks. Some farmers' cooperatives are forming operating entity models covering seeds, chemical fertilizers, planting, field management, pesticide control, harvesting, sorting, processing, and sales, solving the problems of scattered agricultural development and variety structures not adapting to the market. Moreover, some whole-industry-chain operating entities have already gained mature experience. The state should vigorously promote this and drive agricultural transformation. This will help the safety of agricultural products and let society enjoy more and better safe and reassuring food.” Li Zhongjun said.