Home / Markets / Markets Analysis / Soybeans market / China to let market set grain prices

China to let market set grain prices

11/26/2013 @ 7:44am

China plans to allow market forces to play a greater role in setting prices in its politically sensitive grain sector, a state media report Tuesday quoted a senior government official saying.

The government currently uses a mixture of support prices and stockpiling to control domestic prices of major agricultural products such as wheat, rice, corn, cotton and soybeans.

However, "the grain market has reached the point where market mechanisms should determine prices," Fang Yan, rural-economy director at the National Development and Reform Commission, told a conference, according to the China Economic Times newspaper.

The government is likely to use one agricultural product as a means to test "market" pricing while "temporarily extending" price controls on other sensitive products such as wheat and rice, Ms. Fang said.

China's recently concluded Third Plenum, which set the development blueprint for the next decade, said market forces would play a "decisive" role in the economy.

Write to Chuin-Wei Yap at chuin-wei.yap@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 26, 2013 01:16 ET (06:16 GMT)

DJ China to Give Market Greater Role in Grain Prices -- Official->copyright

CancelPost Comment
MORE FROM DOW JONES NEWSWIRES more +

CME Ups Soybean Price Limit to $1 By: 04/23/2014 @ 10:15am CME Group Inc. plans to change the way it sets one-day price limits in the trading of corn, soybean…

Ukraine's farmers miss benefits of… By: 04/23/2014 @ 10:07am Wheat prices in Ukraine in the local currency the hryvnia have hit a historic high due to…

USDA: Reporting Hog Deaths Required By: 04/18/2014 @ 10:45am The U.S. Department of Agriculture said Friday it will require the pork industry to report…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Farm Bill 2014 Timeline