The Research On Grain Target Price System Of China Under The Condition Of Open Economy

As an old Chinese saying goes “food, said the sage, is the first happiness”, grainsecurity is a big issue to our country. In current, with the successive increase of grainproduction, we pay a greater attention to the price of the grain instead of the supply ofthe grain. It also a changed all over the world compare to the previous years. Thus, itis significant to improve the grain price system under the open economy. Our countrybecame a member of the WTO in2001, from then on; China has been taken an openeconomy policy, gradual market reform, the minimum purchase prices of crops and adirect subsidy to low income farmers. Above all we can see that the internationalmarket has a great impact on china’s grain market. Grain security turns to be a biggerissue for our government to provide a stable grain price and income for farmers. Ourgovernment has been put in some grain prices’ manipulation. In conclusion, itdeserves our great efforts to study this issue.Firstly, as for the reform of the grain prices’ policy, we comment on both thevirtual and theoretical aspect to see the theoretical reasons. Then, according to sometheories such as the scissors theory, theory of labor value, theory of effective demandand so on we can analyze the reason of the grain prices’ manipulation. Later, we cantake the rice of Hunan province for example to build a model to measure the grainprices’ manipulation level. Finally, according to the study above, we can establish agrain pricing regime under the open economy, including should establish three Yuanprice systems, the establishment of a new subsidy support system, to establish theRural cooperative, to speed up the establishment grain information system as well asthe improve of grain reform of administrative systems and so on.