Dissertation > Economic > Agricultural economy > China 's agricultural economy > Agricultural sector economy > Farming > Food crops

An Exploration into the Security of China’s Grain Circulation

Author GuoZuo
Tutor HuoHongWei
School Hebei Normal
Course The basic principles of Marxism
Keywords Grain circulation Food security Handan city Policy
CLC F326.11
Type Master's thesis
Year 2013
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Food is the paramount necessity of the people. Grain is the foundation of the world.China is a large agricultural country where agriculture plays a fundamental role. Food securityhas a connection with our country’ safty, impact everone’s life. Recent years, although ourcountry’s grain output is on the increase, but with the rise of the population, grain demand isalso growing, combined with the urbanization process to speed up, environmental pollution,water shortage is growing increasingly. Meanwhile, with the frequent fluctuation ofinternational grain market, the fusion degree between Chinese grain market and internationalgrain market has become higher and higher. The change of supply and demand and thefluctuation of price of international grain market will directly influence and bring threats toChinese grain market. The CPC central "File No.1" has been concentrating on agriculturalissues for10years, with the purpose to improve agriculture-supported policies, developmodern agriculture, propel the integration of urban and rural areas, increase the investment onagriculture, farmer and rural area, provide water conservancy guarantee, promote agriculturaltechnology innovation and carry forward the reform of agricultural management system, ithas taken measures to guide agricultural production, developed rural economy and protectedfarmers’ interests. All those showed that China has attached great importance to securityissues of grain. As an important part of national grain security, grain circulation connects theproduction and consumption of grain, greatly influences China’s economic construction and isclosely linked to the consistent development of economy. City is a vital supporter for anation’s economy development; consequently, it is very important to guarantee the security ofgrain circulation of city.Handan city is an agricultural city, located in the border of four provinces, which is amajor grain producing area. Handan city is a preponderant production area for wheat and corn,with hundreds of billions of pounds of grain produced each year, it occupies one sixth grainproduction of Hebei province and plays an important part in maintaining the security of graincirculation in Hebei province. The supporting measure of grain circulation of Handan citypossesses representative and reference significance. Especially in recent years, with the steadyincrease in overall grain production capability, gradual establishment of grain reserve system, the grain security situation of Handan city has been largely improved. Handan city has gainedgood effects and accumulated work experience in the exploration to ensure grain security. Tolook for a circulation security system which is suitable for Handan city will have positiveeffects on impelling economic development and maintain social stability and bring beneficialinstructions to the research for issues of grain circulation.This paper takes Handan’s grain circulation problem as the research object, aims toprotect our country’s food circulation secuity. By the methods of investigation, documentindex, empirical analysis, induction and deduction etc, with reference to analysis and researchfor grain security and grain circulation security by international and domestic experts andscholars, this paper introduces relevant concepts about grain circulation and relationshipbetween grain circulation and grain security, makes an analysis about the important role graincirculation plays in maintaining stability of grain and oil markets, protecting peasants’ farmingenthusiasm and regulating market supply and discusses the influence on grain securitybrought by grain circulation. It also reviews all grain circulation policies since the founding ofChina, especially those in recent years, and analyzes problesm of Handan city existing ingrain circulation on the basis of the statement of the current grain circulation situation andrelevant policies: insufficiency of grain reserve and inadaption of warehousing to the need ofnew forms; faultiness in monitoring and warning system of grain’s market price, lack ofexperience in food supplies in emergency and imbalance in grain and oil processing industrydevelopment; low competitiveness in grain purchase and sale business and imperfection ingrain marketing system; serve development situation of state-owned grain enterprises and lowqualification of staff and workers. To solve these problems, this article introduces the positiveexplorations by this city on maintaining grain circulation secuity, which mainly includescarrying out the grain purchase by kinds of methods, to create the product of grain and oilbusiness, grain purchase and sale by setting up city and county’s grain and oil storage; toenrich local grain and oil storage scale; to normalize storage management by perfectingadministration and improving technology; to strengthen grain maket supervision by pefectingsystem and stricting law enforcement; to enhanse emergency warning capability by perfectingcontingency plan and constructing emergency monitoring network.This article is based on the research of Handan city’s grain circulation security, it has proposed countermeasures and suggestions to insure our state’s grain circulation security. It isnecessary to figure out the basic number of grain circulation and sort out detailed statistics ingrain purchase and sale, store, processing, and transportation in order to provide a basis forgrain policy-making and macro-control of China; to establish legal policy system of graincirculation and improve administrative management in order to convoy the security of graincirculation; to improve grain purchase and sale system, increase the efficiency of graincirculation and invigorate grain circulation; to structure market monitoring and warningsystem, enhance the ability to handle food emergency in order to guarantee the supply ofgrain and oil markets.

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