Rural modernization will come with risks

The process of implementing China's first policy document of the year, which focuses on rural issues, may come with problems and risks, experts told the Global Times Saturday.

On January 31, the Central Committee of the Communist Party of China and the State Council jointly issued their chief economic policy document for 2013, which for the 10th year in a row is directed at rural issues.

This year's "No.1 central document" says it is aimed at "accelerating agricultural modernization and boosting the developmental vitality of rural areas."

And on Saturday, the State Council rolled out a total of 80 clauses assigning relevant departments to make policies to implement the document.

"But the document may create some problems and risks in the development of our country's rural areas," Du Zhixiong, research department head of the Rural Development Institute under the Chinese Academy of Social Sciences, told the Global Times Thursday.

Du's comment referenced document goals such as encouraging the establishment of large-scale commercial farming, developing resources in rural areas, and guiding urban capital to invest in certain agricultural businesses.

"Capital chases money all the time. And there are questions about how to prevent a jump in prices of agricultural products once massive capital enters the sector," said Du, noting that food safety and protecting local farmers and the environment are also important issues that need to be addressed properly when companies run big businesses in rural areas.

US agriculture giant Monsanto Company, for instance, has faced many legal disputes with farmers over seed patent and planting issues in recent years, as well as criticism for genetically modified crops.

Problems aside, Du noted that if local governments can really protect the interests of rural areas and farmers, the involvement of capital and companies could help ensure food safety, preserve the farming workforce and improve the efficiency of the agricultural industry.

Li Changping, a consultant for Hong Kong-based charity Oxfam International, told the Global Times Saturday that he thinks companies can improve farming organization and provide needed farming technologies.

China's focus on large-scale farming has also been interpreted as an attempt to protect grain security by the nation with the world's largest population.

China achieved increasing grain output for a ninth consecutive year in 2012, setting a record of about 589 million tons.

But imports also rose to 77 million tons.

Zheng Fengtian, associate dean from the School of Agricultural Economics and Rural Development at Renmin University of China, told the Global Times that the 77-million-ton import volume includes soybeans, while "the self-sufficiency rate of rice, wheat and corn, the three major food crops in China, are all above 97 percent."

But Du said, "In my opinion, if companies dominated agricultural product prices, which would rise for sure, Chinese consumers would be much likelier to buy more of cheaper imported products."