The Chinese government attaches great importance to the grain reserves system, and presses ahead with the grain collection and storage system to ensure food security. The national grain reserves system, in which the central and local components well complement each other, has played an important role in stabilizing the market, providing disaster relief, and benefiting the people.
The Central Grain Reserves, operated by China Grain Reserves Group, include grain and edible oil mainly used to regulate the country’s aggregate grain supply and demand, stabilize the grain market, and respond to major natural disasters or other emergencies. They are hailedas the “ballast stone” of national food security. Local grain reserves are mainly used in regional (provincial, municipal and county) markets to ensure emergency response, stabilize grain prices, and guarantee supply. They are the first line of defense for national food security.
As grain has become increasingly market-based, a further reform of China's grain reserves management system remains imperative. Given the government’s predominant role in grain reserves and the fact that the social responsibility reserves system is yet to be improved due to the limited size of the reserves built by grain enterprises, China has taken action in recent years to improve the regulation capacity of grain collection and storage entities in the private sector, and encourage grain processors and farmers to collect and store grain to meet the needs of market-oriented reform of grain circulation.
Enterprises’ grain reserves, as a necessary supplement of the government’s reserves, help ensure regional food security. Encouraging enterprises to build their own reserves as part of their social responsibility is an important part of China's grain reserves reform.
In 2019, China formulated a comprehensive plan for grain reserves management, outlining a new institutional framework in this area. Guidelines on the Institutional Reform to Strengthen the Grain Reserves Security points out that the reserves, whether at the central or local levels, built by the government or enterprises, should complement each other and develop in a coordinated manner. It is imperative to reform the grain reserves management system, improve the grain reserves operation mechanism, and build a more robust, efficient, and sustainable food security system.
In recent years, China has accelerated its efforts concerning the social responsibility reserves built by enterprises, and a shared responsibility mechanism in which government and enterprises both play a role in grain reserves have been introduced in a number of provinces, including those noted for grain production.
