Agriculture Reference
In-Depth Information
per cent per annum, compared to the -0.25 per cent per annum prevailing
between 1952 and 1978. Agricultural TFP growth was kept at 3.9 per cent
per annum from the late 1980s through to the early 1990s (Fan 1997).
Market reform has also been remarkable. In 1978, the prices of 93 per cent
of agricultural commodities were fixed by government and the prices of
another 2 per cent were 'guided' by the government, leaving only 6 per
cent to the market. In 1999, the composition was virtually reversed. The
prices of 83 per cent of agricultural commodities were determined by the
market (Table 7.3).
Although the growth in agricultural productivity has been remarkable,
food consumpton measured n terms of daly per capta calore consumpton
has grown at an even hgher rate (see Table 7.1). Ths dfference mples
that Chna's achevements n food securty are manly due to ncreases n
household ncomes.
Food security policies in China
China's food security policies have aimed at increasing grain self-sufficiency
and food availability to households, especially urban households. These
policies have included self-sufficiency policies, grain marketing policies,
and gran reserve polces (Lohmar 2002).
1
Grain self-sufficiency has been vigorously targeted since 1995, partly
because of the 'wakeup call' by Brown (1995). Grain self-sufficiency is
not only required at the national level, but also at local level. Under the
Governor Grain Bag Policy (GGBP) established in 1995, provincial governors
are required to be responsible for grain self-sufficiency in their jurisdictions.
In order to fulfil their targets, governors have instructed their subordinates
to increase sown areas, yields and grain production. As a result, almost
every locality has its own grain production quota to fill.
The side effects of attempting to achieve grain self-sufficiency at local
level are obvous. Increases n gran producton have been acheved at
the cost of efficiency losses as the practice ignores regional comparative
advantages. Ths polcy has been relaxed followng WTO accesson. At
the national level, provinces are classified into three categories: major
