Full Text: Report on China's economic, social development plan(14)

3. We will adopt comprehensive measures to address both the root causes and symptoms of problems, and keep the overall price level basically stable.

1) We will ensure adequate market supply. Top priority in keeping prices stable will be given to stabilizing the prices for agricultural and sideline products. We will effectively implement the systems whereby provincial governors are responsible for the "rice bag" (grain supply) and mayors are responsible for the "vegetable basket" (non-staple food supply). We will work hard to ensure coordination in the production, transport and sale of important commodities, particularly daily necessities, improve the government and commercial reserve systems, do a good job in purchasing, stockpiling and releasing major agricultural products, and adjust imports and exports appropriately. We will continue to strictly control intensive processing of corn.

2) We will reduce distribution costs. We will formulate and implement a comprehensive plan to reduce distribution costs. We will continue to implement the green channel policy of waiving all tolls for the transportation of fresh farm products; carry out measures to support public benefit-oriented wholesale markets for agricultural products and farm produce markets; open more low-price shops in large and medium-sized cities; support construction of grain and edible oil storage facilities; and actively develop cold-chain logistics for agricultural products and modern grain logistics. We will move faster to phase out tolls on government-financed Grade II highways in the western region, and standardize collection of fees and charges in farm produce markets and by large retail enterprises. We will expand trials of a tax on the income of logistics enterprises after deductions, effectively implement tax policies on the use of urban land by major commodity storage facilities, and adjust and improve VAT policies for the wholesale and retail of some agricultural products. We will accelerate the development of direct supply of agricultural products from farmers to stores, schools and wholesale markets.

3) We will enhance our regulation capacity. We will improve the contingency plan for adjusting prices of important commodities including grain, hogs, edible oils, chemical fertilizers and thermal coal. We will accelerate the establishment of a policy-supported insurance system for basic vegetables, and improve the reserve system for winter and spring vegetables. We will properly handle the timing, tempo and intensity of government regulatory price adjustments. We will set up a sound system of price adjustment funds, and implement and improve the mechanism for coordinating social assistance and social security benefits with price rises to ensure basic living conditions for low-income people. We will formulate laws and regulations on overseeing and reviewing costs of government-set prices, on standardizing enterprise pricing, and on business service fees and charges.

4) We will strengthen market oversight. We will carry out intensive inspections of prices and fees concerning farmers, enterprises and people's livelihood; standardize telecommunications services and tighten oversight of their charges; review the implementation of thermal coal contracts; clean up funds and fees concerning coal; inspect fees charged by commercial banks; rectify unauthorized fines and charges in transportation; and continue to intensify law enforcement actions against price fixing. We will severely deal with all price irregularities.