Farmers' Market in Many Lands Claims Temporary Rent Relief

Southern Rural News The State Council Premier Wen Jiabao presided over the State Council's executive meeting on the 8th to deploy and strengthen the construction of a circulation system for fresh agricultural products.

The conference pointed out that with the acceleration of urbanization, some large and medium-sized cities in the outskirts of the suburbs continue to reduce the number of vegetable plots and retail outlets, increase the circulation links and costs, and “sell hard to buy expensive” issues.

The meeting stressed that the construction of a circulation system for fresh agricultural products has important public welfare. It is necessary to increase policy support while giving full play to the role of the market mechanism. To increase financial investment, transform and build a batch of public welfare wholesale markets, farmer's markets, and vegetable markets through investing in shares, repurchase of leased-for-equity property, and public building support; and upgrade and renovate the main production areas, distribution centers, and main sales areas. A large-scale wholesale market, a processing and distribution center with strong motive power and a wide range of radiation, and guidance of social capital to invest in the circulation of agricultural products. Markets for fresh agricultural products need to be deducted from expenses such as rent, stall fees, and management fees. We will implement and improve the "green channel" and investigate and handle violations of fees and charges in accordance with the law.

According to a staff member responsible for rent management in the Beijing Xinfadi Agricultural Products Wholesale Market, the shortest period for all contracts in the market is also 3 months. Health expenses (150 yuan/month) and rent are also charged on a quarterly basis. The most recent contract should expire at the end of December this year, so the rent will not be adjusted until the end of December.

A staff member of the Xinfa Market Office told the reporter that the market collects market transaction fees at 1%-2% of the transaction amount, and the service management fee is included in the market transaction fee, which will not be adjusted in the short term.

“The current market’s corresponding booth fees, etc. are clearly stipulated in the contract. According to the State Council’s policy, the cost of the reduction is only a small sum of money, which will not have much impact on the prices of agricultural products. In addition, after the stall fees are reduced, the merchants may not correspondingly Reduce the wholesale price of agricultural products," said Wang Liang of Beijing Splendid Land Agricultural Products Wholesale Market Information Department.

“The relevant measures in the market for further reducing the entrance fee, facade rent and booth fee have not been issued.” A staff member of the Mawangdui wholesale market office in Changsha, Hunan, told reporters, “As for management fees, due to health fees, etc. The expenditure is relatively large and it is estimated that it will not decrease much.” The person in charge of the wholesale market of the Shanghai Agricultural Products Center also stated that “According to past practice, the cost of rent and management fees will not be adjusted when the contract is not yet due. Of course, the timing of adjustment of various costs is positive. It is to be unified."

People in the industry pointed out that the phenomenon of arbitrary charges in the agricultural product wholesale market has existed for a long time. At present, some agricultural product wholesale markets are managed by private individuals. For the purpose of profits, the phenomenon of arbitrary charges is difficult to govern.

“Now the wholesale market for agricultural products is generally operated in a corporatized manner, and the stall fees are the main source of profits for the company. If the stall fees are reduced much, it will have a great impact on the company’s profits.” Wang Liang said that although the State Council promulgated a policy requiring lowering of stall fees and management However, the specific rate of reduction will be determined by the company that runs the wholesale market. Of course, the company will not reduce a large margin. As a result, the impact on agricultural product prices will be extremely limited.

Market participants pointed out that the high circulation cost is an important “driver” for the rise of agricultural product prices. As the future inflation situation is still severe, strengthening and improving the weak circulation will help alleviate the inflationary pressures in the medium and long term and it is also an important measure to improve people’s livelihood.

“I think there are three ways to solve these problems: First, the government repurchases the agricultural product wholesale market, and after the repurchase, the government lowers the various charging standards. Second, when the agricultural product price is high, the booth fee can be borne by the government, especially Before and after the Spring Festival, the third is the country's introduction of mandatory regulations and restrictions on stall fees and other expenses, said Li Guoxiang, deputy director of the Institute of Rural Development of the Chinese Academy of Social Sciences.