Farmers should benefit more from price rises, says an article in Guangzhou Daily. The following is an excerpt:

Following the price rise of pork, price hikes are sweeping almost every other food products as well as consumer goods.

Common sense tells us that the increase in the price of pork should benefit farmers. However, figures suggest the opposite.

Statistics from Guangdong Province, South China, show that the average cash income of farmers was 3,080 yuan ($405.20) in the first half of the year, a 6.3 percent rise year-on-year, which is 1.6 percentage points lower than what was achieved for the same period last year.

The income of farmers across the country was up by 13.3 percent in the first six months of this year. It is modest compared with the 11.3 percent rise in food prices in the single month of June.

It is obvious farmers have not benefited from the price rises.

Admittedly, the price hike of pork has been driven by higher feed costs. Yet, there is also the possibility the increase is due to the pursuit of profit by businessmen purchasing pork from farmers at low prices, and selling it at higher prices.

This could be the major reason for the slow growth of farmers' income.

The authorities had introduced a number of policies to ensure the adequate production and distribution of pork and other food. Premier Wen Jiabao also said explicitly that farmers should benefit most from the price hikes.

A subsidy for pig-raising farmers also may not help boost their incomes.

The whole system of purchasing and distributing agricultural produce should be reformed so that farmers can have a more direct access to the market, information, and consequently, to the benefits.

(China Daily July 31, 2007)