Cotton Policy: The Scope Of Target Price Direct Subsidy Does Not Expand.

"According to the requirements of the State Council and the recently concluded central rural work conference, the pilot scale of cotton and soybean direct price subsidies will not be expanded next year, and will still be tested in this year's scope. The focus of next year's work is to organize the pilot well and summarize the experience so as to lay a solid foundation for the expansion of the pilot project in the future." On December 28th, at the Tsinghua 2015 Forum on agriculture, agriculture and forestry held by Tsinghua University, deputy director of the National Committee and Religious Committee of the CPPCC National Committee, Du Ying, deputy director of the State Council and the national development and Reform Commission, said.

Experts attending the meeting believe that China has implemented the minimum purchase price and temporary purchase and storage policy for many years, although it has made contributions to the protection of agricultural production, but it has also caused price spreads at home and abroad, which has led to an increase in imports. The target price pilot policy, which began in 2014, aims to promote the improvement of the market price mechanism. However, Huang Ji Ji, director of the center for agricultural policy research of the Chinese Academy of Sciences and member of the academic committee of the China Rural Research Institute of Tsinghua University, believes that there are still some operational problems to be resolved in the implementation of the target price policy.

　　 Old subsidies push up grain prices and agriculture faces the ceiling.

China's grain circulation reform began in 2004.

"In 2004, the State Council's Article 17 requested that the grain purchase market be liberalized. We abolished the protection price acquisition, implemented the minimum purchase price and the temporary purchase and storage policy, abolished the 4 agricultural tax and gave 4 subsidies, and formed a new import and export adjustment system in the form of tariff quotas. Meanwhile, our reserve system has undergone great changes." Former national development and Reform Commission deputy director Du Ying introduced.

These policies are effective, but there are deviations in the operation. With the changes of the agricultural environment at home and abroad, the more contradictions and challenges emerge later, "duying said," the most notable of which is the rising price rigidity of policy acquisition and storage, which has led to the widening of domestic and foreign spreads and the rising of imports and exports.

Minimum implementation purchasing price In recent years, the prices were basically stable. The transformation took place in 2008.

After 2008, the minimum purchase price of wheat and rice and the temporary storage and storage prices of corn and soybeans increased year by year. From 2008 to 2013, the minimum purchase price of wheat increased by 59%, and rice increased by 97%.

At the same time, imports of agricultural products are rising steadily. Chen Xiwen, deputy head of the central rural work leading group, office director and professor of Tsinghua University, introduced 84 million 20 thousand tons of grain, including soybean net imports in 2013. In 2014, 1-11 tons of imported 88 million 600 thousand tons were imported, estimated to exceed 90 million tons for the first time in the whole year, excluding nearly 70 million of soybeans, about 20 million tons of grain and grain powder, 9 million 220 thousand tons of edible vegetable oil imported in 2013, equivalent to 90% of domestic cotton and 4 million 200 thousand tons of cotton, equivalent to 2/3 tons of domestic sugar and 4 million 500 thousand tons of sugar.

"This is because with the advance of industrialization, the price of resource elements (such as oil) increases and the cost of agricultural products increases faster, which leads to the rise of market price and widening of domestic and foreign spreads." Du Ying said, this makes the current regulatory system in a dilemma: the price rises after the cost rises, the closer the price is to the ceiling, the higher the import volume. If the price is not raised, the cost of production will hurt and the agriculture will decline.

In fact, cotton And sugar has been in a dilemma. Du Ying introduced that in 2011, the domestic price of cotton and sugar has been higher than the price after import duty paid. Cotton reserves are still being stored in large quantities, otherwise the interests of farmers will be impaired. The record of high and low yields is that the government must provide huge subsidies. 2012, the cost has increased by 23%, and the price of temporary storage and storage has increased by only 3%. In 2013, the cost rose, the price of storage and storage did not increase, and the price of sugar was even lowered.

Du Ying said that because the price of the storage and purchase is higher than the market price, only the state owned grain stores, the state-owned cotton storage enterprises and other state-owned enterprises will be able to purchase or store them, or entrust the acquisition, while other market players, such as the processing logistics enterprises, will not have the enthusiasm to enter the market. This led to a long period of time when the grain storage and storage of cotton in the circulation of agricultural products hit the world. The mechanism of price regulation of supply and demand in the market mechanism of agricultural products was vanished.

"With the expansion of reserves and the increasing pressure of subsidies, most of them are being collected by policy. They will be subsidized when they come in. Subsidies are all in circulation, with low efficiency and potential risk of loss. In addition, the bulk of grain and cotton piled up in 6 main producing provinces are mainly Central stocks, grain transfer and storage. The main selling provinces are not in a hurry, causing all the pressure in the central area, and the pressure on food security is too great. Du Ying said.

　　 subsidy Approach the ceiling

While agricultural production is increasing, the amount of agricultural subsidies is also growing rapidly. In 2013, the central government fiscal expenditure of four of agriculture was 170 billion. "Four subsidies affect production costs and prices." Chen Xiwen said.

Under the WTO rule, this subsidy is called "yellow box subsidy" - the subsidy affects the cost, thus distorting the price. If the subsidy does not enter the cost and does not affect the price, it is called the green box subsidy; in a specific period, the subsidy given to land fallow is called blue box subsidy.

"Yellow box subsidies are strictly stipulated. Developed countries can not subsidize agricultural products more than 5%, and developing countries should not exceed 10%. After China's accession to the WTO, after hard negotiations, we can subsidize 8.5%. Chen Xiwen introduced that, in 2013, agricultural production value was 55000 billion, accounting for 9.1% of 60 trillion GDP, but agriculture in the WTO caliber does not include forestry and fishery, so the total output value of agriculture is about 5 trillion, which can be supplementation to about 400 billion.

"However, the regulations of WTO are very strict, which can only be 8.5% of the specific production cost of their own products. In 2013, the grain output value is about 16000 billion -17000 billion, so the subsidy can only be 140 billion -1500 billion. Our 1700 billion includes subsidies for cotton, soybeans and sugar. Basically, subsidies for grain have reached the bottom line. Chen Xiwen introduced.