A Study On The Reform Of State-owned Grain Enterprises

The people foodstuff is all-important. As a necessity of life, grain is the key to the stable and sustained development of China, a country with large population and limited water resources. During the time of planed economy, state-owned grain trading enterprises have played an important role in stabilizing market prices by strictly carrying out the relative policies. Under the market economy, these enterprises have become independent entities, making their own decisions and responsible for their own profits and losses. On the other hand, they continue to supply and implement the government policies. Due to various reasons, state-owned enterprises are suffering serious losses and are unable to effectively take macro-control of the market.The state-owned enterprises are the main players of grain market. To form a sound grain marketing system and effective mechanism, it is urgent to reform these enterprises by turning them into self-managed and competitive entities responsible for their own gains and losses. To adjust to the market economy, the current situation of serious loss and poor competitiveness should be reversed.The paper begins with a review of the reform history of state-owned grain enterprises and goes on to analyze the reasons for continue reform. By referring to the reform practice in Xi'an, a proposal is made in this paper with a hope of providing some beneficial advices for further reform of state-owned grain enterprises.