Grain Market And Government Control: The Preparation Of The Unified Purchase And Resale System

From1950to1954, the capacity of granary in Jiangjin County increased fast and evenly.Before starting the Unified Purchase and Resale System (UPRS) in1953, government control ofgrain market was strengthening during this period in Jiangjin, although the capacity of granary cannot meet the demand of the local government. At the beginning of purchasing, Jiangjin CountyGovernment can not control the rice price fluctuation because large kinds of grain’s quality did notconform to specification of taxing and purchasing. After that, governments controlled the grain’sflow through pricing area differential. At the same time, they limited merchants’ grain business byreducing price differential between wholesale and retail. Then resellers were disappeared from thegrain market and state enterprises expanded their business. In1952, through strictly regulatinglocal market and suppressing grain business, the government fully controlled the market of grainprocessing and sales. With,“Sanfan Wufan Movement”(三反、五反运动) and the administrativereform, they mainly formed the “preliminary work of socialist transformation” in early P.R.China,which also lay the important foundations of the unified purchase and resale system. The pricefluctuation of rice from1950to1953in Jiangjin County also showed that the local governmenthad controlled the grain market before implementing UPRS.