China's Grain Subsidies Review And Thinking

The grain subsidies policy of china is changed from indirect subsidies for consumer to direct subsidies for producer. At present, leading industry of national economy is converted to Non-agricultural industries. In the point of the developing of society, the condition of supporting agriculture from industry is ready. Agriculture became a department to receive subsidies. As the base of agriculture, the grain industry became the focus point in subsidies. Because of important position and weak natures and low comparative benefit, the increasing income of farmers has became problem. At the same time, facing on the grain crisis all over the world, it is more important to guarantee security in grain for the government of our country. Therefore, guaranteeing security of national grain and increasing income of farmers becomes two major goals to grain subsidies of government.The original grain subsidies policy wasn't suitable for developing of economy. In 2004, our government begins to implement grain subsidies police which is directly subsidy. Current policy has brought us good social effects and economic effects. But some of problems had been exposed in execution, it sure be obstruct the efficiency of subsidies to improving. The goal what is to promote grain production and to increase income should be affected. How to ensure subsidies policy supporting our grain industry of our country's developing is still need constantly exploring. This paper is researching grain subsidies policy on this background. This paper is focused on the direct grain subsidies policy by analyzing the necessity of grain subsidies policy and reviewing the history of grain subsidies policy. Then I will evaluate the effect of our country's direct grain subsidies policy with data analysis and theory analysis. At the same time, I will give my opinions to make further improvements by learning experience in developing country.