China to Push Agricultural Reforms to Speed Up Modernization
During an annual rural work conference, China have agreed to push forward the supply side reform in agriculture that will help speed up modernization. This will also ensure abundant and quality farm produce that will satisfy the market demand that mapped out rural work for 2016 and the 13th Five year plan period. Priority will be given to reducing inventories and production costs that would overcome weakness in the sector.
China is also stepping up grain processing to cut stock, curb overuse of pesticide and fertilizers, promote large-scale production, reinforce rural infrastructure, introduce social services to slash costs and boost short supplied farm produce to overcome weak links. Initiating supply side reforms, policy makers hit a spot at a crossroads of modern agricultural development. Years of good harvests, China grew out of the food shortage period, but structural problems remain unsolved this including contradictions of falling prices and rising costs wherein some produce are over supplied and some are in extreme shortage. Total grain output has increased 2.4 percent to 621 million tons year on year in 2015 the 12th straight year of growth. But inventories are piling up and are estimated to accumulate billions in tons of grain stock. Corn alone is at 400 million tons and is at a bottleneck and needs reforms on the supply side.
President Xi Jinping stated that he instructed China’s agricultural and rural development is still facing many challenges and that greater efforts must be made to support rural development and advance rural reforms. Xi also said that China must accelerate construction of rural infrastructure and improve services and facilities in villages and urban areas that are favored by rural immigrants and promote urban and rural development.