Accelerate the innovation of the city

Ren Xingzhou, director of the Economic Research Institute of the State Council Development Research Center, said on September 8 that the futures market played an irreplaceable role in the reform of agricultural product price formation mechanism at the 2017 China (Zhengzhou) International Futures Forum.

Ren Xingzhou said that the country has long been concerned about the issue of agricultural prices, agricultural product price formation mechanism reform has made considerable progress. It is imperative to promote the reform of the formation mechanism of agricultural products. On the one hand, it is necessary to make the market play a decisive role in the allocation of resources. On the other hand, the structural reform of the supply side also compels the reform of the mechanism of the formation of agricultural products. In 2016, the state in the three northeastern provinces and Inner Mongolia to implement the "market-based acquisition + subsidy" of the new mechanism, the formation of agricultural product price reform significantly accelerated.

"The reform of the price formation mechanism has achieved initial results, the market mechanism began to play a more important role, to guide producers in accordance with market demand to adjust the planting structure, producing areas to be optimized, but also led to the reform of agricultural supply side." She said.

However, this also increases the volatility of agricultural market prices, agricultural producers, processing trade enterprises are facing increased risk and uncertainty, the market price depends on the effective market mechanism to find. This requires the futures market to play a role and role, to provide a mechanism to resolve and hedge the market risk for the entity to provide a variety of hedging tools.