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China - Government reassures on rising food prices - "Take it easy" - October 27, 2020

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  • China - Government reassures on rising food prices - "Take it easy" - October 27, 2020


    Food prices will go up? take it easy


    October 27, 2020 04:06




      Original title: Grain price increase? take it easy
      Securities Times reporter Yu Shengliang

      Recently, news shows that some grain traders claim that upstream prices have increased their grain prices. Many people have stated that they will go out and buy some grain to keep at home to prevent grain prices from rising.
      How much food can a family save? Urban families have no special equipment, no warehouses, and no tradition of hoarding rice. Ordinary families have to eat more than ten kilograms of rice in bags for a long time. 50 kilograms of bags are usually sold to restaurants, which is estimated to be two to three hundred catties. This is the limit of most families. This scale is enough for a family to eat for a year. According to the average household storage level, three or four months is the time limit. Unless you have special equipment, you can store a few tons of grain, or buy an extra-large refrigerator and put it in the refrigerator.
      Even if the storage volume is large enough, the old grain will be eliminated after the new grain comes down after a year. As time increases, the taste of the old grain will deteriorate, and the government will release the old grain to buy the new grain for several years. Prices are generally discounted. So hoarding too much food is not economically worthwhile.
      If you hoard two or three hundred catties of rice or flour and an extreme situation occurs, such as a doubling of the price of food, the amount saved is only 300 to 600 yuan, which is equivalent to more than ten catties of pork, and it is easy to spend on food. Digest, but it is difficult to calculate the energy and kitchen occupation cost, which is higher. In general household expenditures, food expenditures accounted for only a small part, and more of them were vegetables, fruits and meat.

      Judging from the comparison of grain purchase progress, no grain farmers are obviously reluctant to sell. Even in rural areas, there are very few households hoarding food, and they keep enough for their own use. A small number of people who did not sell it at the time were just to sell it at a better price.
      Of course, some people are not only trying to prevent food prices from rising, but to prevent food shortages.

    (But don't worry! s.s.)

    With today's technology and transportation conditions, this situation is hard to happen again.


      What's interesting is that fruits, vegetables and meat have been on the rise over the years, and people can easily accept and bear it, but when it comes to rising food prices, they seem to be particularly sensitive and resistant. This may be because, for some low-income people, food is the most basic necessity, which will reduce the consumption of other foods, and the price increase of other foods has little effect on them. If food prices really rise sharply, food vouchers can be issued to assist them.
      Rising food prices are beneficial to grain farmers, the agriculture in which China has the most workers, and farmers will increase their incomes. Agricultural workers have a sense of gain, which can help the long-term stable and healthy development of the industry. In this sense, the price of staple foods that have not risen for a long time should go up.
      The increase is a wish. Before the wish, there is a question of whether it will increase.
      The recent increase in corn and soybean prices has underpinned wheat and rice. Early indica rice and wheat have been stored in warehouses for a long time and will be bought by breeding companies to replace corn. This is a sudden situation this year. However, the current staple food prices are still very stable, mainly because the staple food has always been self-sufficient. Soybeans mainly rely on the international market, and corn partially relies on the international market. The latter two are not scarce on a global scale, but they are affected by international relations.
      The price of staple food has not risen, which is related to the increasing content of agricultural science and technology. Although more and more funds are invested in the land, the cost of agricultural production is declining. The main reason is that mechanization consumes more oil resources and labor input time is decreasing. . In contrast, the prices of vegetables, melons and fruits have been rising. These industries are difficult to scale, the labor time cannot be reduced, and there are more losses and higher unit product channel resource prices.
      There is also a basis for price increase in staple food prices, that is, because of moderate inflation, the wholesale price of distributors will increase by about 2% every year, including the increase in circulation costs, which is the basis for the increase in food prices.



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