Wuhan Agriculture Bureau Takes Action to Stabilize Vegetable Prices
Following the "Hubei Nine Measures" announced by the provincial Price Bureau, Wuhan's Agriculture Bureau introduced nine measures yesterday aimed at stabilizing the prices of daily necessities in the "food basket."
The Wuhan Agricultural Information Center reported that compared to last month: the overall price of aquatic products and livestock products in our city has remained relatively stable. Vegetable prices, however, have shown both increases and decreases. The prices of local vegetables such as Chinese cabbage, spinach, head cabbage, cauliflower, tomatoes, lettuce, and radishes have generally fallen, with some seeing a maximum drop of 55%. In contrast, the prices of eggplants, potatoes, green beans, and cucumbers procured from outside sources have risen, with some experiencing a maximum increase of 38%.
The Wuhan agricultural department stated that over the past month, the national market prices for edible agricultural products have continued to rise for several weeks. Our city's "food basket" has also seen varying degrees of price increases, but the rate of increase remains below the average level for large and medium-sized cities nationwide. "This year, abnormal weather conditions, rising costs, and international increases in agricultural product prices have all contributed to the rise in agricultural product prices," said an official from the Agriculture Bureau. To stabilize vegetable prices and ensure supply, measures have been taken recently to expand vegetable production, ensure market supply, and prepare for winter storage and spring supply, aiming to lower the prices in the food basket for all citizens.
Measures to Ensure the Stability of the "Food Basket"
Adherence to daily price monitoring. Predictions and warnings on vegetable supply and price changes.
Ensuring market supply. Ensuring daily vegetable wholesale volumes remain around 4.8 to 5 million kilograms, fresh eggs at 500 tons, fresh fish at 2,000 tons, and live pigs at 1,500 heads.
Expanding vegetable production. This autumn and winter, our city has newly established fast-growing vegetable bases covering more than 6,000 mu (approx. 400 hectares).
Issuing temporary price subsidies. The Wuhan municipal government has decided to distribute monthly price subsidies to urban low-income recipients from next month until February next year.
Accelerating market construction. Encouraging major agricultural product consumers to directly sign procurement orders with vegetable sales enterprises and delivery companies.
Preparing for winter storage and spring supply. Implementing reserve tasks for 3.2 million kilograms of vegetables, 10,000 boxes of small packaged clean vegetables, 1 million kilograms of fresh fish, and 600,000 kilograms of fresh eggs to meet citizen demands during the two festivals.
Implementing the "Green Channel." Starting December 1st, vehicles legally loaded with fresh agricultural products will be exempt from vehicle tolls. Sweet potatoes, potatoes, fresh corn, and fresh peanuts will be included in the Green Channel variety directory.
CBRC: Strictly Prohibiting Credit Funds from Speculating on Agricultural Products
Recently, the China Banking Regulatory Commission (CBRC) issued an urgent notice requiring financial institutions to take effective measures to support agricultural product production, ensure supply, and promote stability in agricultural product market prices. The CBRC simultaneously required strict prohibition against credit funds being used to speculate on agricultural products. Chief Economist of Galaxy Securities, Zuo Xiaolei, indicated that this measure could help bring down agricultural product prices.
The CBRC requested that all local banking regulatory bureaus and financial institutions play a financial support role by formulating targeted credit plans, increasing total loans for agriculture-related purposes, and meeting effective credit demands throughout the production, processing, and distribution of agricultural products.
Since July this year, overall price levels in our country have climbed month by month, especially with agricultural product prices becoming the main factor driving up general price levels. To ensure the supply of agricultural products and stabilize market prices, on the 22nd, the CBRC Office issued an "Urgent Notice on Increasing Credit Fund Support for Agricultural Product Production, Processing, and Distribution."
"I am not sure if there are any instances of bank credit funds speculating on agricultural products, but if the CBRC really wants to investigate, they can definitely find out," Zuo Xiaolei told our reporter yesterday. If it is discovered that credit funds have indeed been improperly used to speculate on agricultural products, these funds will be urgently withdrawn to repay loans after investigations, leading to a decline in agricultural product futures prices, which would then cause spot prices to fall.
Among edible agricultural products, vegetable prices continue to decline. The average wholesale price of 18 types of vegetables dropped by 2.6% compared to the previous week, with the decrease expanding by 1.8 percentage points; the average wholesale price of eight types of aquatic products remained basically unchanged; demand for meat steadily increased, continuing to push prices higher. Pork prices rose by 2.2%; edible oil prices continued to rise.
One of the most noteworthy measures is the strict prohibition against credit funds speculating on agricultural products. In the notice, the CBRC required banks to strengthen control over the use of agricultural credit funds, control risks of misappropriation from the source, seriously investigate and deal with violations where credit funds are misused for speculation, hoarding, or price gouging of agricultural products, and suppress unreasonable credit fund demands.