In 2013, the market price of pork dropped rapidly while the price of sugar remained sluggish. Major and devastating natural disasters and emergent events of public health happened frequently, bringing great difficulties to the targets of emergency regulation and supply guarantee. The Ministry of Commerce, on the conditions of respecting market disciplines and based on the principles of “classified management, graded responsibilities and planning internal and external affairs as a whole”, has consistently improved the administrative system for reserved commodities, smoothened the working mechanism and procedures for regulation and control, strengthened the construction of emergency abilities and strived to guarantee the market supplies of daily necessities.

I. Essential work has been enhanced and management of reserved commodities has been standardized.

1. Reserve management system has been improved and the management procedures have been standardized. The Ministry of Commerce has formulated, printed and issued systems concerning planning and layout for the centrally reserved meat and sugar, recognition of qualification of enterprises undertaking reserves, and planning of arrangement procedures; initiated the revision to the administrative measures for the centrally reserved meat, sugar and border-sale tea and strived to form a complete reserve management system with logic rigors and clear linkage so as to further prevent risks, smoothen procedures and guide the standardized and efficient operation of reserve management.

2. The construction of information reporting system has been enhanced and the monitoring sample structure has been optimized. In order to well develop the monitoring of emergent commodity data and grasp information with respect to production and inventory of emergency material nationwide, the Ministry of Commerce has formulated 2013-2015 Emergency Commodity Data Monitoring Report System (hereinafter referred to as the “System”), adjusted and optimized the varieties of commodities in the database and improved monitoring indexes to make more scientific and more reasonable monitoring samples. The Ministry of Commerce has also directed local competent commerce authorities to thoroughly carry out the propaganda for the System, enhanced the training for major enterprises linking emergency commodity database, urged the enterprises to report the data and ensured information reporting on a timely and accurate basis.

3. Training has been enhanced to improve the overall quality of reserve team. In 2013, the Ministry of Commerce organized and directed relevant units to hold training on reserve for centrally reserved meat and livestock, and the training for reporting training of ledger information with respect to the centrally reserved beef, mutton, frozen pork and sugar in two phases. Through the training for the enterprises undertaking the reserve and relevant staffs, the Ministry of Commerce has created a good condition for the smooth development of the centrally reserved meet.

4. The monitoring and inspection have been enhanced to ensure the achievements made in reserve. The Ministry of Commerce has successively conducted inspection of flood prevention and aestivation for the centrally reserved sugar and meat, major inspection of production safety in the units undertaking the reserve of commodities, inspection of the inventories of the centrally reserved sugar together with Agricultural Development Bank of China, and directed relevant units to conduct regular and irregular spot checks. Through enhanced monitoring and inspection, the Ministry of Commerce has gained a full understanding of the reserve management, found out and solved existing issues and promote the implementation of systems.

II. Market discipline has been accurately grasped to well develop market regulation focusing on major commodities.

1. Price and supplies of meat market have been stabilized. Since 2013, the market price of pork has maintained sluggish, affecting the enthusiasm for cultivation. In view of such situation, the Ministry of Commerce has successively conducted six times of purchase and storage of centrally reserved frozen pork and alternation in three phases since April 2013; the regulation effect is remarkable. The price of live pigs rose constantly from the bottom of RMB 12.62/kg in April to RMB 16.03/kg. The price ratio of pig price to fodder price rose from the bottom of 5.24:1 in April to 6.58:1 on November 13, which has effectively promoted the sustainable and healthy development of live pig and pork markets. Meanwhile, the Ministry of Commerce has also directed local authorities to increase local reserve and commercial reserve.

2. Regulation and control of sugar market thoroughly have been implemented. Since 2013, domestic sugar price has maintained depressed. Therefore, the Ministry of Commerce has reserved domestically produced white sugar for three times in two phases, effectively preventing the trend of sugar price for excessive falls, and protecting the interests of sugarcane growers and the industry. In addition, in view of the alternation of centrally reserved sugar, the Ministry of Commerce has convened meetings with relevant departments for several times to study the stock removal of reserved sugar and strive to improve the purchase, reserve and alternation of sugar.

3. Management for reserve of border-sale tea has been thoroughly carried out in the new trend. In order to further enhance the reserve management of border-sale tea, the personnel of the Ministry of Commerce went to Hubei, Hunan, Inter Mongolia and Gansu, supervised and urged the enterprises undertaking reserve of border-sale tea to carry out the reserve management thoroughly and conducted research and investigation on production, sales, and reserve management of border-sales.

4. Market supplies in major festivals have been guaranteed. Before the Spring Festival of 2013, in order to guarantee the market supplies in five concentrated areas of minorities in Northwest China such as Xinjiang, Inter Mongolia, Qinghai, Gansu and Ningxia, 11,250 tons of frozen pork, beef and mutton were put into the market of these areas. Before the Dragon Boat Festival, 4,550 tons of reserved frozen beef and mutton were repeatedly put into market in the concentrated areas of minorities, who feed on beef and mutton. Before the Mid-autumn Festival, in order to guarantee the supplies of pork in the market, the Ministry of Commerce organized 48 enterprises to put 47,000 tons of centrally reserved frozen pork into the market. In order to guarantee the market supplies of vegetables in winter and spring in northern cities, the Ministry of Commerce, in concert with departments such as National Development and Reform Commission, has been actively promoting and carrying out the reserve of vegetables for winter and spring in northern cities since September.

III. Construction of emergency ability has been enhanced to properly handle various emergent events.

1. Construction of emergency ability has been enhanced. The Ministry of Commerce has improved the emergency plan system, completed the drafting of the Emergency Plan for Market Supplies of Daily Necessities, and directed local authorities to formulate specific emergency plans; enhanced construction of database for emergent commodities (up to 63 types) and mainly contacted 1,768 enterprises; improved the emergent commodity dispatching system, increased the number of emergent commodity distributing centers and network points for emergency circulation; selected 2,600 enterprises as the elite enterprises, more than 870 distributing centers, and more than 21,300 network points nationwide to form a network of emergency circulation; promoted the promulgation of the national guided directory of commodities for emergency and supply guarantee; continuously promoted system innovation, and explored new methods of reserve management and market regulation and control in the new trend.

2. Active responses to “April 20” intensive earthquakes in Ya’an, Sichuan Province. After Lushan earthquake, the Ministry of Commerce initiated the emergency plan, arranged market supplies for earthquake relief, and went to the disaster areas to assist local authorities in relief and supply guarantee. According to the demands in the disaster areas, the Ministry of Commerce dispatched 5,000 raincoats, 10,000 flashlights and 30,000 batteries to the disaster areas and assisted relevant authorities in finding sources for disaster relief materials and equipment such as 100,000 square meters of color band cloth, 100,000 red candles and 200 sets of water purification equipment.

3. H7N9 bird flu and floating pig event in Shanghai have been properly handled. Since March 2013, H7N9 bird flu became epidemic in some regions of China; in April, large quantities of dead pigs floated to the second level water resource protection zone in Huangpu River in Songjiang District, Shanghai. In view of possible impacts of these emergent events on market supplies, the Ministry of Commerce issued relevant documents, requiring local competent commerce authorities to enhance organization and leadership, pay close attention to the market changes, grasp the market status timely, positively promote the trend of market supply and demand through TV and network and prevent the market from being raided by malicious hype.

4. Market supply guarantee has been thoroughly carried out in drought and flooded areas and under continuous high temperature. In view of storm weather in many places in south China and drought in certain regions, the Ministry of Commerce, according to the arrangements made by the State Flood Control and Drought Relief Headquarter, organized inspections for the market of daily necessities before the flood season and sent personnel to Jiangsu to inspect the preparation for the flood and drought made by commerce and trade circulation enterprises, wholesale markets, reserve warehouses and points, and supermarkets, required all places to enhance inspection for flood and drought prevention and practically guarantee the market supplies of daily necessities in the disaster areas during the flood season.

Translated by Hou Zuowei

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