Idle Capital Escapes And Agricultural Products Depreciate

Why is the price of agricultural products for a while? Hurricane And then suddenly plummet?

Li Youhuan, an expert in hot money research at the Guangdong Academy of Social Sciences, said in an interview with our reporter that the hot money research team has shown that ginger, garlic and other agricultural products are soaring, mainly driven by hot money speculation. The sudden fall in the prices of agricultural products confirms the conclusion. As the various departments of the country began to curb the excessive inflation of prices, hot money moved and converged, and some of the funds escaped. This is the reason why the price of agricultural products has dropped in the past week.

Li Changping, an expert on agriculture, rural areas and farmers, believes that the rise and fall of vegetable prices are mainly affected by seasonal factors. Like ginger and garlic, which are easy to store and yield and consumption are not large, the surge this year has a certain role in promoting capital speculation. But even these varieties can not be stored for too long. Therefore, after a period of speculation, a large amount of stock has surged out, and the fall in prices is affirmative.

But Li Youhuan said hot money did not run away. according to Its monitoring shows that the inflow of hot money in early November is even more severe than that in October, which means that price regulation will face greater difficulties. In fact, although the prices of agricultural products have dropped recently, the prices of many varieties such as ginger and garlic are still far too expensive.

Policy recommendations should be targeted at intermediate wholesale links.

In order to curb the rapid rise in prices, there are many places. government In November 10th, the Fuzhou municipal government took the lead in launching 4 kinds of vegetable sales guidance prices in local supermarkets, and local governments began to follow suit. However, some people in the industry say that temporary intervention by local governments in the vegetable market can only relieve the symptoms, and may convey the wrong market information.

Li Youhuan said that according to the survey, the price of the agricultural products rose from the link after leaving the planting area. The farmers did not profit from it. A lot of hot money was involved in the acquisition process. Then they hoarding goods and raising prices and selling them to wholesalers and retailers at a high price, because the retailers were very expensive and did not earn much money from them. Regulation, starting from terminal retail, limiting prices may lead to erroneous price information. According to the survey, retailers are reluctant to sell in some restricted areas.

Li Youhuan said that the key point of hot money speculation in agricultural products was sold back to the wholesalers from the land acquisition, and the regulation should also deal with the symptoms.

Li Changping said that the emergence of inflation is turning to stability with the increase in grain prices. If the government can continue to raise the minimum grain purchase price, the prices of other agricultural products will remain stable.