In 2015, the minimum purchase price policy for wheat continues to be implemented in the main producing areas

The reporter learned from the National Development and Reform Commission on the 16th that in 2015 the state will continue to implement the minimum purchase price policy in the main wheat-producing areas. The minimum purchase price for wheat produced in 2015 (third grade) is 118 yuan per 50 kg, unchanged from the 2014 level.

A relevant official of the Development and Reform Commission said that in order to protect farmers' interests and prevent “low grain prices hurting farmers”, in 2015 the state will continue to implement the minimum purchase price policy in the main wheat-producing areas. After comprehensively considering factors such as grain production costs, market supply and demand, comparative returns, international market prices and the development of the grain industry, and with the approval of the State Council, the minimum purchase price for wheat produced in 2015 (third grade) remains unchanged from the 2014 level.

It is understood that in 2004, China fully liberalized the grain purchase market and purchase prices, and grain prices were formed by the market. Starting in 2004 and 2006, the state implemented the minimum purchase price policy in the main producing areas for two key grain varieties, rice and wheat, respectively. Since 2008, in response to the relatively rapid rise in grain production costs, the state has raised the minimum purchase prices for grain for 6 consecutive years.