Research On The Countermeasures Of City Grain Security

The grain issue is very important to the national economy andpeople’s livelihood. It should be treated as the highest priority to solve thegrain issue especially for China, the most populous country. Utilizingreliable and applicable measures to ensure national and regional grainsecurity and stabilize grain market supply and price plays a great role inthe healthy development of socialism. Grain security will motivate socialharmony and economic stabilization smoothly and orderly. Besides, it isalso an effective protection to the international financial crisis. Grainsecurity cannot be provided with market automatically. It is a kind ofpublic products requiring macroeconomic regulation and control such asquantity control, price intervention, etc.Recently, edible oil and salt panic implies that city grain security is not so optimistic under the severe situation of national grain security.Influenced by worldwide and national grain security situation, city grainsecurity has its own characteristics, such as vulnerability of preventingagainst grain price volatility. There are different emphases for city grainsecurity from national grain security measures, especially on timeliness,which can be improved to deal with market emergencies.Shanghai is the main grain market in China. Grain security is thematerial guarantee to the normal operation and continuous developmentof Shanghai, Metropolis, which raises over23-million people. Limitedcultivated land area and production potential makes Shanghai grainmarket large dependent on overseas market and notably affected by thenational grain supply, demand and storage. Besides, high degree ofmarketization, sensitive price volatility and inadequate residentialhousehold grain inventory make Shanghai grain market vulnerable toemergencies. There is great pressure on grain market supply security andprice stabilization. Recently, grain security system has been establishedbased on the early warning system of Shanghai grain security. Throughreasonable design in macroeconomic regulation, government proceeds,analyzes and refines significant fundamental data such as current grainsupply and demand, grain inventory and grain market price etc. toestablish an early warning system predicting and judging market supplycondition and price movements. This system can integrate prediction and processing into an entire standardized system. Through predicting thegrain market security situation, it can be of great significance that thesystem motivates the responding speed of government macroeconomicregulation and capability of grain security.This paper first introduces the basic concept and its property, therelative theory of supply and demand balance and crisis management.Based on the description of international circumstances of cityl grainsecurity, this paper briefly elaborates the current grain security situationand then analyzes the city grain security characteristics and strategies.Take the example of Shanghai, it will build the grain security systembased on the grain security early warning system, to ensure the regionalgrain security. This paper finally proposes several political advises toShanghai grain security early warning system.