Farmers should benefit more from price rises, says an article in
Guangzhou Daily. The following is an excerpt:
Following the price rise of pork, price hikes are sweeping
almost every other food products as well as consumer goods.
Common sense tells us that the increase in the price of pork
should benefit farmers. However, figures suggest the opposite.
Statistics from Guangdong Province, South China, show that the
average cash income of farmers was 3,080 yuan ($405.20) in the
first half of the year, a 6.3 percent rise year-on-year, which is
1.6 percentage points lower than what was achieved for the same
period last year.
The income of farmers across the country was up by 13.3 percent
in the first six months of this year. It is modest compared with
the 11.3 percent rise in food prices in the single month of
June.
It is obvious farmers have not benefited from the price
rises.
Admittedly, the price hike of pork has been driven by higher
feed costs. Yet, there is also the possibility the increase is due
to the pursuit of profit by businessmen purchasing pork from
farmers at low prices, and selling it at higher prices.
This could be the major reason for the slow growth of farmers'
income.
The authorities had introduced a number of policies to ensure
the adequate production and distribution of pork and other food.
Premier Wen Jiabao also said explicitly that farmers should benefit
most from the price hikes.
A subsidy for pig-raising farmers also may not help boost their
incomes.
The whole system of purchasing and distributing agricultural
produce should be reformed so that farmers can have a more direct
access to the market, information, and consequently, to the
benefits.
(China Daily July 31, 2007)