Agriculture Reference
In-Depth Information
Table 5.3 shows that in 2000 the real grain price, expressed as a weighted
index of the state purchase prices and market prices, was 8 per cent lower
than the 1985 level. By 2000 domestic prices of major grains had fallen to
levels similar to, or even significantly lower than, world market prices.
Since 1998, the state quota and above-quota prices have been combined
to form a support price, which was higher than market prices at the
begnnng but by 2000 was smlar to market prces. Ths was because
the decson makng about support prces has been decentralsed to the
provincial or lower-level governments, and these governments cannot afford
to subsdse gran prces.
Detailed discussion on the reasons for such large fluctuations in domestic
market prices can be seen in Wang (2001). Table 5.3 provides a comparison
of prces of major grans n rural markets between 1994 and 2000. It shows
that the real prce of rce and wheat n 2000 were at levels equal to only
70 per cent and 66 per cent, respectively, of their 1994 levels. The 1994
prces were low compared wth those n 1995 and 1996.
There was a recovery n domestc gran prces n 2001. Up to September
2001, grain prices were 7.5 per cent above the levels of September 2000,
and 5.7 per cent above the levels at the end of 2000 (Center for News
Table 5.3
Comparison of real grain prices in rural markets between
2000 and 1994 (yuan per tonne)
Items
1994
1996
1998
2000
2000/1994 (per cent)
Rice
2,057
2,818
2,175
1,721
70.0
Wheat
1,141
1,741
1,298
944
66.2
Corn
1,009
1,487
1,579
1,225
97.2
Soybean
2,451
3,212
2,928
2,534
82.7
RCPI (per cent)
100
102.7
104.2
102.6
IPIA (per cent)
100
113.5
106.8
101.4
Notes:
RCPI and IPIA are the Rural Consumer Prce Index and Input Prce Index n
Agriculture, respectively.
Real grain prices between 2000 and 1996 were derived using a compound deflator from
RCPI and IPIA at 0.5:0.5.
Source:
Calculated from National Bureau of Statistics, 2001.
Statistical Yearbook of
China
, China Statistics Press, Beijing.
