Study On Grain Price Fluctuation In China

Food is the priority of people,and grain enjoys the prominence of food.Since ancient times,the government of each dynasty paid their primary attention on grain in order to ensure their long lasting governess.Since the foundation of the people's republic of China,our government has attached great importance to grain production. Since the 1990s,grain price has experienced great fluctuations,accompanied by the fluctuation of grain production and development of the entire national economy. Chinese people may still clearly remember the surging grain price,1994 and 2004. Along with the continued rising of CPI and world grain price,the public has paid general attention on the grain price fluctuation.Therefore,the studying on China's grain price fluctuation will bring us important theoretical and practical significance.This paper firstly reviews the historical evolution in grain price policies since 1991;a specific analysis in the performance of China's grain price fluctuations was made at the same time.Then,an empirical analysis on China's grain price fluctuations was given to get the main factors that impact the grain price:grain production of prior period,net grain import quantity of prior period,the level of per capita income of urban residents,price of agricultural means of production.Then the paper analyzes China's grain price fluctuations,in particular,the rising grain price on the impact of urban and rural residents it concludes:(1) Only when grain price raise more,the farmers can get more increased income;(2) If grain price raise more,the low-income urban households will be affected more greatly.Finally,on the basis of the above analysis, the paper gives a number of policy recommendations about China's grain prices and grain production control.