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    Large Grain Enterprises Receive Notice From Government To Suspend Flour Price Increase

    2011/4/15 9:36:00 52

    Large Grain Enterprises Postponed Raising Flour Price

    The relevant departments asked grain enterprises to delay the price increase for two months, and the major enterprises were forced to cancel the April price hike plan. Experts believe that the government can give appropriate subsidies or policy to related enterprises.


    Following the extension of the price limit order of edible oil production enterprises, reporters yesterday confirmed from a number of grain enterprises that large grain enterprises such as ancient boat flour and five profit flour have been notified by relevant state departments, requiring enterprises to delay the price increase for two months. The price of flour raised by major enterprises in April was suspended.


    Flour enterprises are expected to raise prices this month.


    At the end of last year, big grain companies demanded higher prices because of the high purchase price and rising cost of wheat. Subsequently, the national development and Reform Commission interviewed two heads of enterprises in January, and the major enterprises were asked not to raise prices before the two sessions. Meanwhile, in order to make up for the loss of enterprises, the State Grain Administration arranged for enterprises to bid for low priced wheat.


    The relevant person of the ancient ship flour sales department confirmed that the price of flour was originally raised in April, but because it was notified by the relevant departments of the state, it was determined that the price would not rise.


    The relevant departments of the market department of five profit flour enterprises said that the enterprise had to raise three cents per kilogram of flour, but now it is delayed by two months according to the requirements of the State Grain Administration.


    The reporter confirmed from several grain enterprises involved, "has received the documents of the State Grain Administration. The document has been published inside the enterprise, but the document is clearly issued according to the spirit of the national development and Reform Commission's price control. "


    Enterprises say logistics costs are difficult to control.


    On the 14 day, the price monitored by the Fairview land and oil market showed that the price of the packaging of the ancient boat Fu Qiang powder (50 Jin) was 71 yuan / bag, while the five profit and strong powder was 72 yuan a pack.


    Liu Jingliang, director of Fairview land market, said the price of flour has not risen recently. Market traders have said that they have heard that the state has demanded that enterprises should not go up.


    Flour does not rise in price is benefited by the public, dealers can also guarantee sales, but enterprises are called "suffering words." Ancient boat flour enterprises related personage introduction, currently used wheat products are American wheat, Canadian wheat and Australian wheat, and the price of domestic wheat is high, so the cost of raw materials is greatly increased.


    Wu De Li flour related responsible person said, enterprises are now the biggest pressure is logistics costs and labor costs. "There are green spanportation corridors for vegetables, but no food." The official said that raw material is a policy grain, so it can be controlled, but the cost of logistics is difficult to control and fluctuates at any time. In particular, grain is basically spanported across provinces. So we need to increase the cost to the flour price by raising the price. The official said that selling flour now is not profitable.


    Development and Reform Commission set up price joint meeting


    At the end of last year, after a massive price adjustment in Beijing, the prices of agricultural products in major markets fell down collectively. This year, prices have been on the rise, including meat, vegetables and other prices have been rising continuously, higher than the same period last year.


    Subsequently, there were public reports that the national development and Reform Commission recently met with instant noodle businesses, department stores and beer giants. In April 2nd, the price bureau of the national development and Reform Commission will also invite the heads of 17 industry associations to hold an important consumer goods Industry Association symposium with the national development and Reform Commission's economic and trade department and the Ministry of Commerce's market operation Department. Among them, the association was interviewed by the National Federation of industry and commerce, the China Food Industry Association, the general merchandise business association, the beverage industry association, the Dairy Association, the household electrical appliance Association, the grain industry association, the Meat Association, the vegetable association and so on. Recently, edible oil enterprises also called for a delay in raising prices as requested. The move signifies the government's re - launch of temporary price intervention.


    Reporters learned from the relevant government departments that the form of the interview was actually called "joint meeting". According to the introduction, in order to ensure supply and stabilize prices, the national development and Reform Commission has a joint conference system, which is composed of many government departments. Once the price problem is involved, multiple departments will be able to solve the problem.


    Expert opinion


    "Policy care" can ease business difficulties


    Liu Xiahui, director of the economic growth theory Office of the Economic Research Institute of the Chinese Academy of Social Sciences, believes that the CPI of March has not yet been published, but it must be relatively high. But this year, our government's price control target is within 4, so there is a recent news of this intensive interview. "I think this is better and can effectively control the speed of price rise."


    For enterprises to complain about difficulties, Liu Xiahui believes that with the increase in upstream costs, and spanportation, human resources and other aspects of the cost increase, enterprises are bound to face difficulties, and even some industries are still relatively large. But he believes that the government can give appropriate subsidies or policy considerations in this regard, such as preferential loan policies, preferential interest rates, or tax reduction measures, which can help solve or alleviate the difficulties of enterprises.


     

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