-discussion on six measures taken by the State Council to vegetable basket project

 

In recent, China’s State Council released policy to promote vegetable production and guarantee market supply and stable price. The State Council points out that in recent years the system of the city mayor's responsibility for the vegetable basket project is not fully carried out in certain areas. Related measures are not taken; vegetable production is at a low level; distribution facilities are not adequate. The self-sufficiency rate of vegetables in some large cities is quite low. And vegetable prices fluctuate dramatically. It’s hard for farmers to sell vegetables while citizens have to pay high price. Also, in the rainy season of this year, floods happen frequently impacting on vegetables supply. Therefore, the State Council takes six measures.

 

Mr. Huang Dejun, General Manager of BOABC points out China should control the wallet at the same time. In fact, excess liquidity and increasing inflation pressure is also an unignorable factor causing vegetable prices rise rapidly.

 

Secondly, reasons causing high prices of vegetables include distribution chain is overlong; wholesale markets in production areas are undeveloped; the location of vegetable wholesale market is not designed scientifically; vegetables have to be transported to wholesale markets far away before retailing. Therefore, it is essential to develop agricultural products direct selling. For example, Farm-To-Supermarket project could efficiently shorten the distribution chain and reduce the cost and final prices of vegetables.

 

Also, the problem so-call “the last 1 kilometer” is another reason driving vegetable prices rising. In recent years, impacted by booming real-estate, the number and scale of farm product open markets is declining considerably. Meanwhile, driven by soaring land value, the rent in open markets rises substantially and leads to price increase of vegetables.

 

Mr. Huang Dejun suggests that implementing the system of the city mayor's responsibility for the vegetable basket project is very necessary. We should carry out the project as developing public facility. Also, we should consider approving mobile stalls in certain places of communities to offer more conveniences and low-price vegetables to citizens.