The price regulation is effective, the food rises in case of brake

On November 20, the General Office of the State Council issued the "State of the Article 16", requiring all localities and relevant departments to take timely measures to do a good job of price regulation and supervision, and stabilize market prices. Securities Times reporters found that the central and local governments have made concerted efforts to regulate and control prices. The retail and retail markets have experienced a slight decline in the prices of vegetables, and food and pork prices have slowed down.

The price of some agricultural products has stopped rising and falling. Compared with high housing prices, the impact of high prices, which are dominated by agricultural product price increases, on people’s lives is more direct and intense. In the 4.4% increase in CPI in October, the increase in food prices "contributed" by 74%. Since the introduction of the "State 16" of price stabilization, the prices of various types of vegetables and foods on the market have loosened significantly. The stars "beans you play", "garlic you", "Gong Youjun", and "Gao Gaozong" all moved in response at the beginning of the year and the prices dipped.

When investigating the Agricultural Products Wholesale Market of Dayang Road in Chaoyang District, Beijing, the Securities Times reporter found that the prices of the varieties that led the increase, such as garlic and ginger, had a big drop. Compared with a week ago, garlic prices have dropped from 5.5 yuan/kg to 5 yuan/kg, and ginger prices have also dropped from 6 yuan/kg to 4.5 yuan/kg. Mungbean prices also dropped to 6 yuan/kg.

The “destiny” of “Gao Gaozong” has reversed: Since late November, the soaring price of sugar has rapidly turned downwards, approaching a record high of 8,000 yuan per ton, and rapidly falling back to 6300 yuan to 6,500 yuan per ton. yuan. It dropped more than 1,000 yuan per ton in just over 10 days. This makes some people in the industry once predicted that the price of sugar will soar to 9,000 yuan per ton. "Gao Gaozong" was actually "Xuan Xuanzong."

In addition, a reporter from the Securities Times visited some of Beijing's vegetable markets and supermarkets and discovered that the prices of many vegetables on the market have quietly dropped back, and vegetables below RMB 2 are not rare. The prices of vegetables such as spinach, carrots, cauliflower, lettuce, and Chinese cabbage, which had a relatively high increase in the previous period, were all reduced to 2 yuan/kg, and cucumbers also became 1.5 yuan/kg.

However, the Securities Times reporter found in the interview that the prices of grain, oil and pork are still rising, but the increase has slowed. Affected by the successive increase in the price of bulk rice, bulk flour and bulk rapeseed oil in the previous period, the price of small brand flour flour has risen by 0.5 yuan to 1 yuan in the most recent week, and the brand brand flour has also risen by about 2 yuan per bag. The price of rice has also generally risen. For example, rice loaded with 50 pounds of northeast rice was sold for 100 yuan a week ago and has now risen to 108 yuan. One week ago, the price of the egg was 4.5 yuan/kg, now it is 4.7 yuan/kg.

The pork market has come out of the downturn period in which prices have fallen in the previous period and sales have been poor, entering the season of rising prices and increasing sales. The Securities Times reporters found that the small bosses before the meat case are all in a hurry. If customers want to buy sausages and salted bacon, they would have to make an appointment in advance if they want to buy 5 pounds or 10 pounds at a time. In mid-November, pork and pork belly prices were 8.5 yuan/kg and 11 yuan/kg, respectively, which was higher than the same period of last year.

Various local governments have been working on adjusting data to show that local policies have begun to show results. According to the Xinhua News Agency's national agricultural and sideline products and agricultural materials price system monitoring, compared with the previous day, on November 28th, the price of vegetables was mainly reduced; the price of aquatic products was mainly increased; the price of pork increased slightly; the price of eggs decreased slightly; The prices of beef, mutton and fruit fluctuate slightly; the prices of edible oil, white granulated sugar, finished grains and milk are basically stable.

Last week, local governments introduced policies to stabilize prices. In Beijing, the Municipal Business Council took the lead in organizing more than 30 supermarkets and catering companies, such as Wal-Mart and Wumart, and negotiated direct marketing of agricultural products with more than 40 agricultural cooperative organizations in Beijing. The price of some agricultural products dropped by 20% or even 50%. Shanghai is exploring the mechanism for connecting and supporting the off-site and off-site facilities in the vegetable wholesale market and domestic bases.

Hunan Province will add a budget of 10 million yuan on the basis of 2.3 million yuan this year to support vegetable production next year, and arrange more than 20% of the price adjustment fund for the construction of a vegetable base. The Hunan Provincial Government has also re-signed the “responsibility form of the vegetable basket” with the municipalities (prefectures) to formulate meticulous assessment methods and implement the “food basket” mayor responsibility system.

Heilongjiang has recently introduced a number of measures to stabilize the price level, including the initiation of price emergency detection and early warning, the establishment of an emergency direct supply mechanism, and the dynamic subsidy assistance mechanism for rising prices for low-income groups.

In addition, Shaanxi Province has stipulated that all regions will not be allowed to issue new government-supplied price increases. The Shaanxi Provincial Price Bureau informed the price department of the province that it would strictly control the price increase project. By the end of this year, except for the price adjustment projects that have been uniformly introduced by the government and approved by the provincial government, new price increases will be banned by the government.

Inhibiting hoarding and increasing speculation, increasing subsidies, and national price controls have brought about a weakening of market price increases. Li Guoxiang, deputy director of the Institute of Rural Development of the Chinese Academy of Social Sciences, said that price increases, especially agricultural product prices, which have occurred since this year have had little impact on the Chinese economy. However, it has adversely affected the lives of residents. The 16 measures proposed by the State Council have taken into consideration both the short-term and the long-term. If they can be put in place, they should be effective.

Li Guoxiang emphasized that although the government has regulated the price, it has its rationality and necessity, but it must respect the laws of the market. As far as the prices of agricultural products are concerned, it is unfavorable for the big ups and downs. The government should learn to grasp the intensity and rhythm of the regulation and seek a balance.

Mao Changqing, chief agricultural analyst of CITIC Securities, also stated that at present, both policy protection and the country’s actual control over food are at the best in history. Taking wheat as an example, China's wheat yield and planting area are among the highest in the world. Inventories are relatively abundant. The State Reserve Auction also ensures the country's control over grain and oil products including wheat.

As for what steps the follow-up countries should take to continue to stabilize prices, Li Guoxiang stated that the government’s future response to the rise in agricultural prices is nothing more than the following: First, direct price control and intervention; Second, subsidies, including for producers and consumers. Subsidies. The direct intervention of price regulation is more harmful and it is more feasible for the government to indirectly stabilize prices through large companies.

"As for subsidies, producers and consumers should implement subsidies at the same time. It is recommended that producers should be subsidized and set a target price. When the market price is lower than this price, it should be based on the difference and stabilize the price," said Li Guoxiang.

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