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Mr. Huang's portfolio covers the Department of Market System Development, Department of Market Operation Regulation, China Chamber of Commerce for Import and Export of Light Industrial Products & Arts-Crafts, China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters, China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products, China Chamber of Commerce for Import and Export of Medicines and Health Products, and Slaughter Technique Identification Center. He also assists Vice Minister Liao Xiaoqi in his responsibilities with respect to the Department of Policy Research.
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Assistant Minister Huang Hai's Response to Questions Posed by Reporters on Supply of Agricultural Production Material During Spring Sowing
2007-03-03 10:09  MOFCOM

Q: What is the current situation of agricultural production material market? What kinds of problems have impact on smooth spring sowing?

A: A year's plan starts with spring, so that spring is the key season for agricultural production and it is the busiest season for preparation of spring sowing. Once the agricultural production material market is fully supplied in spring, it shall play a significant role in guaranteeing sustainable, healthy and stable development of agriculture, increasing farmer's income, lowering farmer's burden, and maintaining national grain safety.

In recent years, under the guidance of CPC and governments from all levels, all local authorities of commerce work hard to vigorously exert the role of market distribution administration, so as to boost for a stronger and bigger distribution industry for agricultural production material market.

But the problems appearing in the supply brings disadvantageous impact on insurance of the spring sowing. It shows in fake and inferior agricultural material that injured farmers occasionally and the rising price. It is especially for the price fluctuation, the cost of farmers increased which injured their activity of growing the grain a certain extent.

In order to insure smooth promotion of spring sowing in 2007, Ministry of Commerce issued the circular of fulfilling agricultural production material supply in spring, which complete deployed the work and put forward the specific measures on ensuring a stable market. It required all local authorities of commerce to further strengthen awareness, carefully organize resources, organize market order, perfect distribution system development and ensure smooth work of spring sowing.

Q: What kinds of measures does MOFCOM take to ensure the supply and stabilize the price?

A: MOFCOM attaches great importance to commodity distribution in rural area in spring sowing and takes the following measures to ensure sufficient supply of the agricultural production material.

1, effectively organized the commodity resources for agricultural production material market and stabilize supply in spring sowing. MOFCOM vigorously organizes and pushes forward the close buying and selling relationship between distribution enterprises and manufacturers.

2, further pushes chain operation. A set of agricultural production material chain enterprises will be developed to take part in the Project of Rural Retailing Development in 2007. They shall carry out chain operation on agricultural material in the countryside; rebuild distribution body through the smooth chain distribution channel, so as to bring convenience for farmers to buying agricultural material.

3, crack down on marketing of fake and inferior agricultural production material. According to Measures on Retailers' Promotion Activities regulated by MOFCOM and other 4 ministries, examination on promotion of agricultural material should be strengthened in spring sowing and such fraud activities as randomly raising the price and fraud rewarding sales should be strictly beaten.

Q: How to boost the chain operation so as to exert its role in stabilizing market price and insuring material quality?

A: Project on Rural Retailing Development in 2007 will continue to support the development of chain running network for agricultural production material operated by a set of rural funded enterprises.

1, Support the powerful distribution enterprises to take part in development of the Project. 2, Further improve developing level of rural stores. 3, Keep on planning control. Rural stores should be controlled at a proportion below 20% in east and below 30% in other areas. Market operating principle shall be represented in the retailing development and the stores involved in the Project shall play an exemplary role.

Q: How to set up the distribution system in accordance with modern agriculture, which in turn fundamentally settled the problems in current market?

A: It is the significant guarantee for developing modern agriculture that to build up a unified, opened, orderly and competitive market system. And the key point is that we shall start from modernization and marketization.

1, Modernization indicates to strongly develop the chain operation. The chain operation is the extension of advanced management in a longer chain and larger scale. Specialized labor distribution and socialized collaboration present in the distribution field with high efficiency, low cost and high degreed systematism, which reflects developing requirement of advanced productivity. The political measures supporting chain operation launched by State Council and relevant departments will be fulfilled so as to create favorable environment for retailing development.

2, Marketization indicates to push forward the entrance qualification of the market and formulate competitive and orderly market environment. Various investment bodies will be encouraged to participate in distribution of agricultural production material according to the regulation. Enterprises that have power in developing modern distribution pattern shall be supported for the entrance through such patterns as newly building, annexing and combining. Efficient competition with various bodies shall be formed through absorbing fund, technique and managing experience at home and abroad vigorously, and reconstructing and promoting network of rural operation.

(Source: Network Center of MOFCOM)

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