2016年CRI New Thinking, Supply-side Reform Stressed in Agriculture Modernization

The document was released by the Central Committee of the Communist Party of China and the State Council.

The policy paper underscores the importance of innovation and the supply-side structural 1 reform in the agriculture sector 2.

According to the document, total grain output increased 2.4 percent year on year to 621 million tonnes in 2015, the 12th straight year of growth.

However, it points out that though China has grown out of a food shortage period, structural problems remain unsolved: some produce is over-supplied and some is in short supply. 

Li Guoxiang is a researcher with the rural development institute at the Chinese Academy of Social Sciences.

"While playing down the risk of food shortages, the policy paper also stresses the supply of agricultural products of good quality. All in all, to reform the sector is the core of this policy document; that is to say, farmers should plant what the customers demand."

The paper says China will improve the quality and competitiveness of its agricultural products through high-quality farmland and professional farmers catering 3 to the demands of modern agriculture.

It pledges to create at least 53 million hectares of high-quality farmland by 2020.

It also encourages enterprises to "go overseas" to balance exports and imports.

Wednesday's document also says that food security through the supply of major farm produce should be guaranteed.

According to the paper, new national standards on food safety will be prioritized and standards on pesticides 4 residues 5 and veterinary drugs will reach international standards by 2020.

Li Guoxiang with the CASS notes that both governmental supervision 6 and the market play important roles to achieve that goal.

"Under the market mechanism 7, products planted with a strict use of pesticides and chemical fertilizer would be priced higher, while by strengthening supervision, any violations 8 in the use of pesticides and chemical fertilizer should be severe punished and held responsible."

The paper says that China will follow its "red-line" system and guarantee that land dedicated 9 to farming never shrinks to less than 120 million hectares.

In the meantime, it also stresses the importance of green development in rural areas.

The paper sets targets of increasing woodland coverage 10 to above 23 percent by 2020, and wetland acreage above 500 thousand square kilometers.

In regard to farmers, the document says rural workers will be given more support to integrate into cities and find employment.

The "No. 1 central document" is the name traditionally given to the first policy statement of the year and is seen as an indicator 11 of policy priorities.

It was the 13th consecutive 12 year that the document has focused on the issues concerning agriculture, rural areas, and farmers, highlighting the strategic importance of these sectors 13.

For CRI, this is Niu Honglin.