China’s Grain Price Control Policy And Its Effects

The food is the basis of the national economy and the necessity for human survival.Foodand food price volatility is an important area of research theorists and hot spots.This article is based on the market and the international background of the Chinesegovernment to achieve the goal of food price control policy, to take literature reading method,comparative analysis, quantitative analysis and other methods, starting with the grain ofinferiority, urban and rural equity theory, theory of food security discusses aspects of China’sgrain price control policies theoretical basis, and then on the analysis of food price controlpolicy development process, based on the analysis of the current policy, China’s grain priceregulation mechanism, then the stability of food prices,food pricing, fiscal cost three aspectsof the effects of food price control policy analysis concludes improve our food price controlpolicy recommendations.This research was supported by the main conclusions:(1)By using a linear regressionmodel of distributed lag factors influencing the stability of food prices empirical analysis andcomparative analysis of sub-species degree of influence of each factor, analysts pointed outthat the international price transmission on Food significant effect on price stability. Withwheat, corn and rice, the domestic soybean price transmission by international factorsaffecting the degree more pronounced.(2)The calendar year for China’s grain pricefluctuations for statistical analysis, points out the lack of pricing power and overall foodsoybean impact our food due to the lack of pricing power unequal trade rules, the monopolyof multinational grain merchants and foreign genetically modified food the impact oftechnology.(3)On China’s grain price control policy of each fiscal cost analysis found thatfood price stabilization policies would produce a certain overproduction, is bound to makethe financial costs, while producing vested interests, will maintain their vested interests ideas,leading to government spending is growing.(4)Construction of grain from the target pricesystem, improve the food subsidy system to support and improve the food price formationand discovery mechanisms,formulate and improve food supply and demand balanceddevelopment strategy, improving the grain reserve management and control system, improveour food system, and six international trade policy, put forward a comprehensive food pricecontrol policy recommendations.