Regulation and Policy 

Prices of Early Indica Rice in Major Producing Areas  

(October 1, 1999) 

The governments have begun early indica rice procurement routine one by one since August.  

The procurement policies in major producing areas show great difference as compared with previous years. 

When maintaining the procurement policy and procurement price, governments in major producing areas have set the procurement prices and protective prices at the same level and enlarged the gaps between varieties and grades. In addition, most provinces have lowered their protective prices for early indica rice, except Guangdong which set the price at the last year's level. 

Taking seven major producing areas of Jiangxi, Hunan, Hubei, Anhei, Jiangsu, Zhejiang and Fujian as samples, average procurement price of medium grade standard early indica rice is 50.86 RMB/50kg, down 13.1% as compared with 1998's procurement price and down 2.8% as compared with 1998's protective price, respectively. 

Details in several provinces are as follows: 

Jiangsu The procurement price and protective price for medium grade standard early indica rice are 51 RMB/50 kg; those for low quality early indica rise are set below the production cost, which is 45RMB/50kg. 

Hunan The procurement and protective price for medium grade standard early indica rice is 51 RMB/50kg, with the price gap between grades rises to 2 RMB/50kg from the previous 1 RMB. The procurement price for high quality early indica rice is 10% higher than common quality early indica rice, which should not be below 56 RMB/ 50kg. The procurement price for low quality early indica rice is 45 RMB /50kg.  

Anhui The procurement price and protective price for medium grade standard early rice are 50 RMB/ 50kg, with the price gap between grades increasing to 2RMB/50 kg from 1RMB. The procurement price for high quality early indica rice is 10% higher than common quality early indica rice. 

Jiangsu The procurement and protective price for medium grade standard early indica rice is 50 RMB/50kg. 

Fujian The procurement and protective price for medium grade standard early indica rice is 53 RMB/50kg, with the grade price gap rate at 3%. The government still provides 10 RMB subsidy for each 50kg procured rice (minus agriculture tax). 

Guangdong The procurement and protective price for medium grade standard early indica rice is 60 RMB/50kg, equivalent to last year's procurement price and 5 RMB higher last year's protective price for each 50kg.