Grain price formation mechanism urgently needs improvement, eliminating the policy-driven market is key
During interviews, reporters learned that in the grain sector, especially in improving grain import policy measures, supply-side structural reform needs to be strengthened, and among these, the grain price formation mechanism is the most critical.
Industry insiders offered the following suggestions: First, reform the grain price formation mechanism, improve China's grain circulation policy, effectively let the market play its role, and resolutely refrain from intervening in matters the government should not manage; in addition, relevant safeguard measures should be improved.
Cheng Guoqiang, a researcher at the Development Research Center of the State Council, stated that on one hand, it is necessary to eliminate the "policy-driven market," restore market mechanisms, establish fair and predictable market-oriented competition rules and order, and fully leverage the role of diverse market entities. On the other hand, competitiveness-oriented approaches should be used to promote cost reduction, form a balanced domestic and international price situation, and ease import pressure. High quality and good prices should be advocated, and the supply and demand structure should be optimized.
Xinhua News Agency special economic analysts Ma Wenfeng and others stated that the substantial decline in actual domestic grain prices compared with last year was mainly affected by the state's market-oriented reform of corn. With grain marketization and falling prices, the state must promptly raise the pension level for elderly people in rural areas to ensure that total consumption in agricultural production areas does not decline sharply, thereby ensuring stable overall economic growth.
Second, at the grain import level, it is necessary to gradually increase discourse power and pricing power. Some industry insiders suggested that leading grain import enterprises should take the lead, absorb enterprises with the highest trade volumes, and effectively strengthen the role of industry associations. For example, the soybean association could be led by COFCO Group and composed of the top ten enterprises by trade volume, focusing on playing a role in price negotiation, financial risk assessment and early warning, and enhancing discourse power and pricing power.
Third, draw on the experience of some countries such as the United States and Canada to reduce grain impurities. Wang Xiuzhong, director of the Agriculture Bureau of Wenshang County, Shandong Province, stated that to improve the competitiveness of grain, it is necessary to gradually strengthen large-scale operations, reduce grain production costs, promote new agricultural technologies, and after large-scale planting and harvesting, use specialized grain transport vehicles to deliver grain to warehouses, reducing impurities generated during circulation and improving grain grade.