Chinese government to step up development of grain industry

Keywords: Chinese government, grain industry
The State Council has issued a circular calling for faster development of China’s grain industry and agricultural supply-side structural reform. It aims to enhance agricultural efficiency and raise farmers’ income.

The circular sets a target of building a modern grain industrial system by 2020. The national quality rate of grain will increase by 10 percentage points, value added of the grain industry increase by 7 percent yearly, and processing rate of grains hit 88 percent.

According to the projection, there will be more than 50 grain enterprises with main business revenue surpassing 10 billion yuan by 2020.

The circular urged deepening ownership reform of State-owned grain enterprises, and fostering a group of competitive ones among them. It aims to invigorate the industry and safeguard food security.

China will verify and support a batch of leading grain enterprises. And will encourage them to establish an industrial alliance with related market entities. It is for better use of complementary advantages, the circular said.

Grain enterprises are asked to participate in developing functional regions of grain production. And they are also asked to promote integration of grain production, purchasing, storage and sales.

Cluster development of grain and oil industries tapping advantages in geographic position and resources was stressed in the circular. That also encouraged grain enterprises to explore diverse approaches to recycled use of grain and oil by-products.

“Internet Plus Grain” is highlighted, with efforts needed to develop grain e-commerce and new-type retailing businesses such as online grain stores.

It is important to cultivate famous grain brands with independent intelligent property rights and competence. It is also important to strengthen protection of grain products’ rights to patents and trademarks, and strictly crack down on production and sales of counterfeit products.

The circular also stressed upgrading the industry with increased supplies in quality green grain and oil products. Industrialized production of dominant foods, deep-processing of grain products, and better services for grain storage are also stressed.

The circular called for carrying out innovation and heavy investment in research and development, and improving the talent development mechanism.

Also, policies in finance and tax, financial insurance, and land and electricity will be introduced to support the development of the grain industry.