the floor price policy for grain

Under the condition of market economy, we should give full play to the basic allocation function of the market to the grain market. When there is a "market failure", the government should introduce intervention policies including the minimum purchase price without destroying the market mechanism as much as possible. Following this principle, we should improve the minimum grain purchase price policy from the following aspects:

First, clarify the rights and responsibilities of the acquirer and strengthen the management of entrusted storage enterprises.

Second, adjust the minimum purchase price to fully reflect the quality price difference and regional price difference.

Third, clarify the implementation conditions and give play to the basic role of the market.

Fourth, improve sales methods and improve transaction efficiency.

Fifth, deepen the reform and reorganization of state-owned grain enterprises with market orientation.

Sixth, clarify the functional orientation between the central and local grain reserves and the market purchase of grain. According to the forecast of relevant departments, China's wheat planting area was 23 million hectares in 2007, and the wheat output in 2007 is expected to be1044700 tons, an increase of 2.53 million tons or 243% over the previous year's1044700 tons. Wheat production has once again achieved a bumper harvest, which is not unrelated to the implementation of the national minimum protection price policy. The minimum purchase price policy has promoted farmers' enthusiasm for growing grain, stabilized grain production and increased farmers' income. The implementation of the minimum purchase price policy makes it impossible for the actual market price to fall after the increase of grain output in the past, thus affecting the enthusiasm of producers. The price level of wheat in 2006/2007 was significantly higher than that in 2005/2006, which protected the enthusiasm of wheat producers. We can imagine that if the minimum purchase price implementation plan is not started in 2006, the market price of wheat may drop to a very low level. It is precisely because of the earnest implementation of the minimum purchase price policy that the actual price of wheat has remained at a high level, which has increased farmers' income and effectively stimulated farmers' enthusiasm for growing grain. According to statistics, from 1996 to 2002, the income of urban residents increased by 3,326 yuan, with an increase rate of 76%, while the grain consumer price index dropped significantly, while the income of farmers only increased in 550 yuan, with an increase rate of only 28.5% from a low base. According to the latest data, in areas where the minimum purchase price policy of wheat was implemented in 2006, farmers' income increased by more than 4 billion yuan. In areas where the minimum purchase price policy has not been implemented, farmers' income has also increased to varying degrees due to the rise in food prices. According to the unified management of relevant departments, the per capita net income of rural residents in 2006 actually increased by 7.4% over the previous year, which should be closely related to the implementation of the minimum purchase price policy. Judging from this relationship, the minimum purchase price policy basically realized the increase of farmers' income.

From the perspective of national food security, the implementation of the minimum purchase price policy has effectively resisted the impact of the sharp rise in international food prices on China's grain market. Since 2006, due to the bad weather in Ukraine, Australia and other major producing countries, wheat production and stocks have been greatly reduced. According to the forecast of USDA, the global wheat stock in 2007/2008 will drop to the lowest level in 30 years-112003 tons, with an annual gap of 9.92 million tons. Affected by this, the international wheat market price has gone out of a relatively rare rising market. In 2006, the international wheat market price increased by 30% over the previous year, and continued to increase by about 90% in 2007. It is precisely because of the implementation of the minimum purchase price policy that China's wheat production has been guaranteed year after year, which makes the annual supply and demand of wheat surplus and effectively guarantees China's food security. Therefore, the minimum purchase price policy is one of the important measures to avoid huge fluctuations in grain production, and it is also an important means for the state to carry out macro-control on the grain market in an extraordinary period, which is of great significance. There are still some problems in the formulation and implementation of the minimum purchase price policy, mainly:

First, the acquirer's rights and responsibilities are not clear enough, which makes it difficult for entrusted storage enterprises to manage.

Second, the current minimum purchase price is only the grade price difference, and there is no variety price difference, which is difficult to reflect the high quality and good price, which is not conducive to the adjustment of grain structure.

Third, the long-term implementation of the minimum purchase price and the excessive purchase volume have partially replaced the role of the market mechanism.

Fourth, the sales method is too rigid, which increases the transaction cost.

Fifth, the current minimum purchase price policy is not conducive to.