Why cancel the food export custom?
It is approved by State Department that China will adjust some products’ exporting custom and cancel the interim tax for wheat, rice, bean and other food products together with the industrial supplies of vitriol, steel wire and so on from the day of 1st Jul.
We all know that the limit of food export is always a policy of protecting the safety of interior food by some government department. The importance of it is not less than keeping the 1.8 billion acres plowland to some extent, before that the ways of limit food export is not only through collecting custom, but also includes to punish the food smuggling. Not long ago, Guangzhou ever adjudged a case about food smuggling which attracted public attention, actually, the policy is almost the same as forbiding the food export. Then the action of canceling food export tax is really a big change for State Department, it shows that Chinese government does not limit food export strictly any more, and even try to encourage food export by canceling custom.
It seems that this time’s activity of interim custom canceling is in order to stimulate export apparently, whereas the exported trade fall continuously this year, adding the fact of interior food price is at large lower than the international market, all of these factors together cause the appearance of this adjustment.
However, personally I think that the real reason is that China doesn’t exist the risk of food safety, in reverse, there comes forth the phenomenon of food over-production, and it has become more and more serious. With the standing production increasing for five years, in 2008 the total amount of production has raised more than 22.76% to the year of 2003, the per capita output has improved from 333 kilos in 2003 to 398 kilos in 2008.
On other side, due to the long time limit on food export, the interior food price is more lower than the international market. Recently the spring wheat price per ton is 2150RMB, while in international market canadian spring wheat is 375CAD, the same amount as 2900RMB. The condition of food over-production is affecting the increasing rate of income for farmers, the data also shows that their net income is far lower than people who go out for work. Considering the production surplus situation of odomestic food and subsidiary agricultural products are becoming more obvious, the side effect of the falling food price to CPI will continue.
There is no question that it is time to readjust the policies of domestic food safety and plowland protection, government should not only encourage food export, but also need canceling uninflexible plowland protection policy, speed up the process of industrialization and urbanization.
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