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Deputy Director of the National Development and Reform Commission led the team to investigate summer grain purchases
It is reported that from July 13th, Zhang Xiaoqiang, deputy director of the National Development and Reform Commission led the summer grain acquisition research team composed of the National Development and Reform Commission, the Ministry of Finance, the Ministry of Agriculture, the State Grain Bureau, the Agricultural Development Bank Head Office, and the China National Grain Reserve Corporation, in Shandong and Hebei. And other places investigated the progress of summer grain purchases.
According to informed sources participating in the survey, Zhang Xiaoqiang emphasized that in Hebei and Shandong, during the crucial period of summer grain acquisition from July to September, the provinces should implement the wheat purchase policy as the focus of current food work and focus on solving summer grain purchases. In response to questions such as warehousing capacity and capital loans, the Bank actively supported state-owned grain companies and other diversified market players to carry out self-operated acquisitions to ensure that summer grain purchases can be successfully completed.
From the current point of view, state-owned grain companies have been slow to acquire wheat. As of July 10, Shandong Province's state-owned grain operation enterprises have acquired 1.004 million tons cumulatively, a decrease of 195,000 tons year-on-year, which is less than the number of non-state-owned grain operation companies. The acquisition of wheat by state-owned grain trading companies in Hebei is not optimistic.
In response to the problems with the implementation of this year's minimum wheat purchase price, some agricultural officials from Shandong and Hebei have made some suggestions to the research team. According to the person familiar with the matter, when the research group was in Shandong, an official from the development and reform commission of the province stated that the central government should better coordinate the regulation of the relationship between price and food prices, and further protect farmers’ enthusiasm for grain production. The official suggested that the country better coordinate the relationship between price adjustment and food prices, find the best balance between controlling excessive price rises and guiding a reasonable rise in food prices, moderately increase the minimum purchase price for wheat and other foods, and guide the price of grain at a reasonable level. Maintain the basic level of stability.
Since the beginning of this year, the central bank has raised the deposit reserve ratio six times in a row and raised interest rates three times. Financial institutions have shrunk the scale of credit and raised benchmark interest rates. The financing of grain companies has become more difficult and financing costs have increased. In the absence of start-up, grain purchase funds are generally tight. Some agricultural officials in Shandong and Hebei suggested that the state should adopt a policy of discriminatory treatment appropriately, and appropriately increase the amount of policy funds for backbone grain purchasing and selling companies.
The aforementioned informed sources also revealed that some agricultural officials in Shandong and Hebei also suggested that the country should continue to increase its investment in major grain-producing provinces and further increase its comprehensive production and circulation capacity.