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Cabbage issue targeted
www.chinaview.cn 2004-12-03 08:50:36

    BEIJING, Dec. 3 (Xinhuanet) -- How to protect cabbage growers' interests from being damaged needs more exploration, says an article in theYanzhao Metropolis News. An excerpt follows:

    The price of da baicai, or Chinese cabbage at Beijing's markets has fallen to its lowest in fives years due to its high yield this winter. It is the result of market rules - the market deciding price. However, people can not but ask why farmers still suffer during marketization. Increasing farmers' income has been a major goal of the country's economic reform from the planned economy to a market economy.

    It is proven that the previous measures of government controlling all market behaviours, from production, sales to consumption, result in low effectiveness. Farmers, together with other economic players, have suffered a lot under such a system.

    From this perspective, the price of cabbage, the same as other commodities, should be decided by the yield and the farmers should take the market risks. The government's interference in pricing might lead to a waste of resources.

    Then, how to deal with the mountains of cabbage stockpiled at farms?

    A solution is to let insurance companies help farmers ward off risks and the government should supply information and technologies. But since insurance companies are commercial enterprises, it will not handle cases which bring little interest, or even loss. And if the government forces it to do so, it will hurt the interests of other economic players. Furthermore, if the government's information is not accurate, more damage may be done.

    Developing agricultural technologies and providing related market information may be the only aspect the go.

    (China Daily)

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