Henan Province Implements Policy-Based Purchases for Damaged Wheat
Hangzhou Net – The acquisition of Xinmai has reached its peak season, but the wheat harvest in Henan Province has encountered a severe issue of “bad field rain” this year. In some areas, wheat grains and ears have germinated, causing concerns among farmers. To address this situation, the Henan provincial government has implemented a policy that combines policy-based purchases and market-based purchases, specifically focusing on damaged wheat.
The provincial government of Henan has mandated that state-owned grain purchase and storage enterprises, along with other designated entities at the county level, purchase and classify damaged wheat openly and at a price slightly higher than the market rate. To facilitate this, the local government of Huaiyang District in Zhoukou City has established 16 collection and storage locations. Additionally, they have secured a loan of 600 million yuan from local banks to finance the wheat purchase. The government-led collection efforts are also complemented by a grain broker collection model.
Despite a significant portion of the damaged wheat having germinated, it has been found that the food safety indicators remain within the standard limits. To incentivize the purchase of this malted wheat, the government has issued a purchase guide price of 1 yuan per catty (approximately 500 grams), which can fluctuate according to market conditions. The highest purchase price allowed is 1.2 yuan per catty.
As of now, 128,000 tons of wheat malt have already been purchased and stored in eight designated warehouses in Xiping County. In Zhengyang County, a total of 116,000 tons of malted wheat has been acquired, at prices ranging from 1.16 yuan to 1.25 yuan per catty.
According to the Henan Provincial Grain and Material Reserve Bureau, the province has purchased a total of 5.458 million tons of wheat as of July 1. Notably, state-owned grain enterprises have proactively participated in the acquisition, purchasing 1.459 million tons themselves.
This policy-based approach aims to provide a “peace of mind” for both farmers and consumers by ensuring that damaged wheat is appropriately classified and purchased, reducing potential food safety risks. With such measures in place, Henan Province is making significant progress in effectively managing the challenges posed by the “bad field rain” and ensuring a stable supply of wheat in the market.
[Original title: Give the masses a “peace of mind”! The policy covers the purchase of damaged wheat by classification and grade]
Source: CCTV
Author: Chen Dong
Editor: Chen Dong