Second, the import of some products that do not implement tariff quota management but can replace corn has increased substantially, which has intensified the trend of grain import growth. According to the trade rules of WTO, a low tariff of 1% is imposed on imported grain within China's promised quota; 65% tariff will be levied on imported goods exceeding the quota.
3. There are 230 million farmers in China, and the average cultivated area of each household is less than 0.5 hectare. This decentralized mode of production makes China's agriculture encounter great difficulties in improving its international competitiveness. Although the grain output is increasing, the production cost is also increasing, which promotes the gradual increase of domestic grain prices and leads to more grain entering China from the international market.
Extended data:
Chen Xiwen, deputy head of the Central Rural Work Leading Group and director of the office, said: "In the 15 years since the beginning of the new century, the grain production structure has changed significantly. Soybean production is decreasing, and its dependence on the international market has exceeded 80%, and soybean is the fastest growing variety with the biggest gap between supply and demand.
Corn production doubled in 15. Increasing production is not necessarily necessary, but reducing production is precisely the demand that must be met. This is a prominent contradiction between grain supply and demand at present. The reform of the grain supply system should achieve at least four important goals:
First, gradually reduce the import of corn substitutes other than tariff quotas. One of the important measures is to bring the domestic corn price back to the level close to the international market.
Second, new shares can't be increased. This is a matter of quantity, but the government cannot limit production by administrative means, and should let go of the mechanism.
Third, open the market. "If the price is reasonable, the purchase and sale of corn will realize diversification and multi-channel circulation, so that market participants are willing to buy grain, and the inventory pressure will be reduced."
Fourth, farmers should not suffer too much. Chen Xiwen stressed that, under any circumstances, the interests of farmers can't have "ups and downs". Because from the historical experience, if the agricultural policy is improper and harms the interests of farmers, it will lead to a continuous decline in grain output. Maintaining farmers' reasonable income in the process of reform is an important valve to ensure food production and national food security. "
People's Network-Why Harvest or Import-What's wrong with the grain supply and demand structure in China?