The Chinese government is moving to reduce the circulation costs of fresh farm produce in a bid to control vegetable prices, which have recently soared due to low temperatures.
The National Development and Reform Commission, the country’s top economic planner has issued a plan together with other authorities like Ministry of Industry and Information Technology. Starting from January 1st till the end of 2015, wholesale markets of agricultural products are exempted from land use tax as well as property tax.
The plan also includes a low-tax policy on the production and consumption of fresh farm produce. The Ministry of Commerce has ordered local authorities to release government reserves of farm produce. These combined measures are expected to ease the upward pressures on farm product prices.
Vegetable prices kept increasing in the first 10 days of January compared with the last 10 days of December, while meat prices edged up, according to China’s National Bureau of Statistics, which published the average food prices of 50 cities on Monday.
Cabbage prices increased 11.3% to 2.47 yuan ($0.397) per kilogram, while potato prices rose 4% to 3.86 yuan [US$0.62] per kg. Pork prices increased 2.6% to 27.68 yuan [US$4.45] per kg, while beef prices rose 1.6% to 59.30 yuan [US$9.52] per kg.
Prices of aquatic products remained stable in the first 10 days of January. China’s consumer price index — a main gauge of inflation — increased 2.5% year-on-year in December, the highest figure since May, the National Bureau of Statistics said on Friday.