The Minimum Purchase Price policy in China and wheat production efficiency: a historical review, mechanisms of action, and policy implications
- PMID: 40177187
- PMCID: PMC11961431
- DOI: 10.3389/fnut.2025.1536002
The Minimum Purchase Price policy in China and wheat production efficiency: a historical review, mechanisms of action, and policy implications
Abstract
This study addresses challenges in China's staple grain production efficiency by examining the impact of the Minimum Purchase Price policy (MPP) on wheat production efficiency from the perspective of price support. First, relevant literature on price intervention policies is collected, summarized, and organized. This paper reviews previous research findings on the effects of the Minimum Purchase Price policy, social welfare implications, pricing studies, and comparative analyses of wheat production efficiency. Second, the study outlines the development of the Minimum Purchase Price policy and wheat production efficiency, and theoretically analyzes the mechanism by which the policy influences production efficiency. Finally, four recommendations for enhancing grain policy and improving wheat production efficiency in China are proposed: a focus on balanced macroeconomic development and coordinated efficiency, accelerating the allocation of production factors to unlock wheat production's potential, fostering a conducive external social environment for industrial integration, and optimizing the Minimum Purchase Price policy to maximize its benefits.
Keywords: Minimum Purchase Price policy; development history; grain yield; mechanisms of action; wheat production efficiency.
Copyright © 2025 Chen and Cheng.
Conflict of interest statement
The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.
Figures





References
-
- Anderson K. Krueger, Schiff, and Valdes revisited: agricultural price and trade policy reform in developing countries since 1960. Appl Econ Perspect Policy. (2010) 32:195–231. doi: 10.1093/aepp/ppq005 - DOI
-
- Attanasio O, Di Maro V, Lechene V, Phillips D. Welfare consequences of food prices increases: evidence from rural Mexico. J Dev Econ. (2013) 104:136–51.
-
- Wang W, Wei L. Impacts of agricultural price support policy on price variability and welfare: evidence from China’s soybean market. Agric Econ. (2021) 52:3–17. doi: 10.1111/agec.12603 - DOI
-
- Swaminathan MS, Vepa SS. How can India help prevent food price volatility? IDS Bull. (2012) 43:84–91. doi: 10.1111/j.1759-5436.2012.00350.x - DOI
-
- Gohin A, Zheng Y. Reforming the European common agricultural policy: from price & income support to risk management. J Policy Model. (2020) 42:712–27. doi: 10.1016/j.jpolmod.2020.02.008 - DOI
Publication types
LinkOut - more resources
Full Text Sources