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Under opening grain purchase and sale policies, China is implementing the minimum purchase price policies. In addition, the policies for grain and paddy should be implemented in 2004 and the wheat be implemented in 2006. During implementing period, the policy exerts to manufacture the prediction. With the help of a series of agricultural policies, it exerts great role in Chinese price steady, market safety, grain market adjustment, protecting the agricultural income, crop seeded area as well as the service macro-adjustment, during the period of minimum purchase price period. However, the policy also faces some shortcoming, including grain procurement subject single, insufficient of acquisition point, grain prices irrational, separation of procurement rights and obligations as well as the policies do not clear and detail the procurement loan and interest subsidy. This paper taking Henan’s wheat as the example to analyze the influence of the minimum procurement price from the perspective of farmer income and wheat seeded area as well as proposes the improving suggestions for the implement effects.

Analysis on the Current Situation of Grain Minimum Purchase Price Policy in China and Suggestions for Improvement--A Case Study of Wheat in Henan Province