China reaps reform reward

Press, 9 November 1983, Page 32

China reaps reform reward

NZPA-Reuter Peking China’s confirmation that it will have a record grain harvest this year reflects the success of rural reforms and will allow it to cut down further on its huge grain imports to feed its urban millions, said Western agriculture experts. A Vice-Premier, Tian JiE quoted by the Xinhua 'S Agency, said that production this year would overtake last year’s record 353.43 million tonnes. Mr Tian said that the success was due to recent reforms in China’s agriculture. Central to the reforms "hoc Rzxzjr* tha flAunmmflni policy to scrap over-cen-tralised planning and encourage individual farms to regulate their own output Under a “contract responsibility” system, households agree to produce a minimum for the State and are allowed to dispose of any surplus as they see fit. However, in the case of grain, strong money incentives have been added to

exhortations to grow grain to ensure a good harvest. Total profits of State farms have risen at an average annual rate of 14.8 per cent since the contract responsibility system was introduced in 1979, Chinese statistics showed. Crucial to the internal grain supply is the annual wheat harvest, for while China’s rice crop is almost totally consumed in the villages, the wheat and coarse grain surplus is used to feed an estimated 200 million

people in the towns and cities. Western experts said that Mr Tian’s statement effectively meant China would renege on its 1981-84 longterm grain pact with the United States, which calls for a minimum six million tonnes a year of American grain purchases. Latest reports available, from the American Department of Agriculture in Washington show total Chinese commitments this year have reached only 3.80

million tonnes of American grain. The China-United States agreement allows for a lower volume than the six million tonnes specified, but only if China also reduces its commitments from other countries. It has done exactly the opposite this year, increasing shipments from Argentina, France and Australia and assuring another main supplier, Canada, that it would get top priority in future Chinese grain buying.