A Research On The Policy Of Food In China

The food problem, which concerns both the steady as well as growth of0.6billion farmers’ income and the food security as well as the economic steady inChina, should be paid great attention. The western country has established a completeand effective food subsidy system since the beginning of industrialization period. InChina, based on the belief that our country has entered the era of industry fosteringagriculture, the government has finally carried out a series of food subsidy from2004in real sense to support weak agriculture.This presentation does some research on the conception of food subsidy policy,then necessity of food subsidy, and WTO’s regulation on it. We have conclusionthrough the analysis that the food subsidy is not effective and can decrease the welfareof the society on the premise of perfect market. Since agriculture is a kind of basic butweak industry, and the food market has time-lag effect, the country must take somemeasure-the most important, flexible and the most direct among which is the foodsubsidy, to protect and support cultivating. There’s also a positive correlation betweenfood price and inflation, which is on another way to prove that the food subsidy policyis very important.This presentation also gives the horizontally comparative analysis between Chinaand other countries, and sum up some experience we can use. It takes Jiangsuprovince for example to checkout the effect of the food subsidy policy, which turnsout that the food subsidy plays an active role in increasing the farms’ income and thegrain output, and further more point out the problem on it, including the subsidies arenot large enough, the lack of agricultural insurance subsidy and the loss of foodsubsidy during implement. On that basis the presentation gives out the specificsolutions on how to improve the food subsidy policy, for example strengthen the foodsubsidy, establish the subsidy for agricultural insurance, improve the way of subsidyto reduce the loss, and so on.