Analysis on Evolution of Price Mechanism of Rice in China and Japan

Abstract

The development of rice industry plays an important role in China's food security and even the world's food security. The stability of rice price is very important to promote the development of national economy and integrate rice industry chain. However, with the implementation of market-supporting purchase policy for rice, China’s grain reserves have topped off and market prices are distorted, reflecting the failure of government control and market pricing under the policy. By using comparative analysis, this paper compares the evolution process of the rice price mechanism between China and Japan, analyzes the characteristics of the rice price mechanism between the two countries, and draws lessons from the relevant advanced experience of Japan, and puts forward relevant suggestions to improve the rice price mechanism in China. Keywords—Rice; Price Mechanism; Subsidy Policy; Japan