A Study On China's Grain Circulation Policy

China's food issue is not only a critical problem that the Chinese government is focused on, but also a problem that the whole society pays high attention to. At the same time, it is an important problem many experts at home and abroad have always been researching on with great concentration. With the establishment and the development of China's socialism market economy system, it is being realized that grain circulation is of great significance on protection of the farmers' interest and insurance of food security.In order to adapt to the requirement of socialism market economy, Chinese government has been taking great effort to promote the reform of grain circulation system since China adopted opening and reforming policy. In 2004, the decision of comprehensive deregulation of grain market nationwide marked that the market-oriented reform of grain circulation system stepped into a new era.At present, there exist many problems to be settled urgently in the field of grain circulation for historical reasons and the non-completeness of the current policy. For example: The mechanism of grain price is not rational. The grain credit support policy is not perfect. The cooperation relation between the grain surplus regions and the grain shortage regions is not durable and stable. The management mechanism of the government grain reserves is inefficient. And the reform of the state-owned grain enterprises remains an arduous task. If these problems could not be solved in time, the deepening reform of grain circulation system would be obstructed.The thesis considers that the key-point on solving these problems is to deal good with the relationship between the government and the market. First, the fundamental role of the market mechanism in grain resources distribution should be played fully. Second, the government needs to take some macro-regulation measures in order to remedy market defects and ensure food security. Finally, the government's macro-regulation measures should be in proper ways.In the aspect of grain procurement, the thesis thinks that the price support policy should be insisted on since it is a common choice to each country for protecting the fanners' interest. The successful experience of the USA and EU can be used for our reference. For the sake of minimization of the government intervention, the means of direct subsidy should be applied if the market price is lower than the grain procurement support price laid down by the government.In the aspect of grain credit, the thesis thinks that the government should offer financial support to it. After the opening of grain market the phenomenon of loan shrink in some degree is normal for the asymmetry information between Agricultural Development Bank of China (ADBC) and the grain enterprises. In order to acquire...