Analysis on Stability Factors of Grain Price in China

To make grain price stable is an important goal for the Chinese government. The paper compared the grain supply elasticity and demand elasticity to determine the grain price stability in China; used ＂k value＂ method to analyze the grain price fluctuation from 1985 to 2010; divided the grain price volatility into three stages; and analyzed the factors in each phase. On the base, it put forward some countermeasures to guarantee the stability of the grain price.

Soaring Grain Prices Raise Global Concerns

Grain prices often dominate all other product prices,and an increase in their price is usually considered as a prelude to inflation.The three fairly serious inflations,in 1985,1988-1989,and 1993-1995 respectively,were all preceded by grain price hikes.Furthermore,the money supply surged in the preceding year or during the same year in which these inflations occurred.This year has witnessed the same symptoms. High grain prices,which still have a possibility to go up further,have attracted wide attention across the world,including in China.As early as the end of last year,the State Council issued a circular that mandated the stabilization of grain prices in order to strictly crack down on illegal actions such as dishonest merchants driving up grain prices.One time,five State-level Departments led by National Development and Reform Commission,released an urgent announcement in order to safeguard the stability of grain prices in the domestic market.Wu Xiaoling,Vice Governor of the People's Bank of China,said that the negative influences exerted on other product prices by the rise in global grain price should not be ignored.According to Wu,the People's Bank of China will continue to closely watch the price changes. From a global and comprehensive viewpoint,the article analyzes the features of the recent grain price hike and the reasons for its dramatic rise,as well as,the impact it will have on the global economy.

China’s Price System Jeopardizes its Grain Reserves

2008 is a year of bumper harvest in summer grain across China. The failure of numerous state-owned grain depots to purchase grain in times of bumper harvest, however, directly threatens grain reserve security and state control over grain prices in the upcoming year. An important factor underpinning the difficulty of state grain depots to purchase grain is the unwillingness of farmers to sell grain due to the excess of the current market price over the government "protected price" aimed at preventing cheap grain from harming farmers. When grassroots grain depots find themselves in trouble, foreign capital stealthily moves in by taking advantage of this situation. To fulfill grain storage tasks and receive various state subsidies, some state-owned grain depots have no alternative but to surreptitiously raise the purchase price. By contrast, some not so courageous state-owned grain depots can only borrow money to finance the purchase of commodity grain at market prices and subsequently figure out a way to pay back such loans. Behind such distorted grain purchase behavior lies a rough and rugged history of grain price reform in China.

Nutrient Response Functions of Sorghum for Miesso District Central Rift Valley of Ethiopia

This study was executed to offer the basis for optimized profit from fertilizer use for sorghum yield and to determine robust crop nutrient response function and economic rate for the production of sorghum at Miesso Central Rift Valley of Ethiopia. Trails were conducted at six experimental sites, sorghum yield response to N and P fertilizers application and economically optimum rates of nitrogen (EONR) and phosphorus (EOPR) were evaluated on a vertisols within the semi-arid Miesso districts west Hararge zone of Oromia region. The nutrient rates in 2014 cropping season four levels of Nitrogen (N) alone, these levels with 20 kg·ha−1 Phosphorus (P) and without N, 69 kg·ha−1 N with three levels of P treatments including the zero control were evaluated. In 2015, cropping season similar rates of N alone, the same rate N with 20 kg·ha−1 P, 92 kg·ha−1 N with three rates of P including the zero control were evaluated. The treatments were arranged in a randomized complete block with three replications in factorial design. Nutrient responses of sorghum were determined using asymptotic quadratic plateau functions. The significantly highest nitrogen rate was 46 kg·ha−1 alone in 2014 season, which gave grain yield of 2.56 Mg·ha−1 with a maximum yield advantage of 43%. P rates in both seasons and combined (sites + seasons) were not significantly influenced sorghum yield. Nitrogen agronomic and partial factor productivity peaked at 23 kg N ha−1 but declined with increasing N rate. The EONR combined (sites + seasons) were 37, 45, 52 and 60 kg·ha−1 and for the profit to cost ratio (PCR) were 2.43, 3.65, 4.86 and 5.79 at difference cost to grain price ratios (CP) = 3.6, 2.3, 1.6 and 1.2 respectively at Miesso Ethiopia. Nitrogen application had economically profitable than P. The study concluded that the application of N at 37 or 60 kg N ha−1 to sorghum production could be economically profitable for those economically constrained farmers or economically not constrained farmers. Validation should be farther conducted on farmers’ fields for refining the results obtained.

The Causes of Hiking Ethiopian Consumer Prices

A growing consumer price is creating instability in the macroeconomic environment and hinders the consumption level of especially the poor society.This paper then explored the major causes of such increasing consumer prices using Ethiopian cases.Using data from the National Bank of Ethiopia from 1982/1983 to 2019/2020,it condensed the information of monetary sector,external sector and fiscal sector variables to a small set to estimate the causes of Ethiopian consumer price hiking using the ARDL model.The factors determining consumer price differ from food to non-food.The most important factors determining food price are price expectation and fiscal factors.On the other hand,the main determinant of non-food consumer prices is the fiscal factor.The author also found evidence of fiscal factors and price expectation effects on general consumer prices.Therefore,to contain the rise in consumer prices,it needs to exercise conservative fiscal stances,which require minimizing deficit financing,reducing the import tax rate and reducing domestic indirect tax rates such as excise tax and value added tax on basic consumer goods and services.Moreover,sound government policies are essential to address inflation anticipations(providing information for society about the future of inflation)to change public opinion.