Agriculture Reference
In-Depth Information
Imports, exports and prices of grain
Gran trade
In the 20 years from 1981 to 2000, there were net grain imports in 11 years
and net exports n nne years. Total net mports were small compared to
total output. From 1995 to 2000, average annual imports were 4.82 million
tonnes but net mports were only 0.79 mllon tonnes per year. Annual gran
mports have never reached the WTO tarff quota of 22.2 mllon tonnes
durng the past half century. Only n 1995 were mports close to the quota
(20.8 million tonnes), although as discussed below this level of imports
caused a serious oversupply of grain. Table A5.3 lists total imports and
exports of grans and of some major gran products.
Gran prces
Before comparing domestic grain prices with those in world markets, a
bref revew of the structure of the domestc market and changes n the
setting of domestic prices since 1985 is in order.
At the beginning of this period, domestic prices of grain (farm gate
prices) took three forms: the state quota price, the state above-quota
price, and the rural market price. The state purchase prices, especially the
quota prices, were 7 per cent to 25 per cent lower than the rural market
prices in 1985 and 19 per cent to 53 per cent lower in 1993 because the
nomnal state purchase prces ncreased more slowly than market prces
(see Tables A5.4-A5.7). The state quota price in real terms, as a weighted
average, decreased by 20.3 per cent from 1985 to 1993 (Table 5.2). Due to
supply shortages, the state progressively increased its quota or above-quota
prices from 1994 to 1996. Market prices also increased in 1994 and 1995
because market supples were squeezed by the ncreased state purchases
and increased state grain stocks. The highest domestic prices in real terms,
as a combination of the state and market prices, were reached in 1996.
According to an internal report, major grain prices exceeded world market
prices by 38 per cent to 45 per cent at that time, except for rice which
was 8 per cent lower.
