The National Development and Reform Commission requested that the purchase price of sugar in the main producing areas be priced uniformly by the provincial government

First Financial News: A photocopy of the “Notice on Perfecting the Policy of Buying Prices of Sugars” published by the National Development and Reform Commission on October 17th from Yunnan Sugar Net revealed that the National Development and Reform Commission requested the implementation of five major sugar producing areas in Guangxi, Guangdong, Yunnan, Hainan and Xinjiang. The purchase price of sugar is priced uniformly by the provincial and district governments and included in the local government pricing catalogue.

The NDRC stated that the purchase price of sugar in non-main producing areas can continue to undergo market adjustment.

The NDRC requested that the competent pricing department of the main producing areas take into account factors such as the cost-benefit of sugar farmers, the prices of local major agricultural products, the supply and demand of sugar, market prices, and the cost-benefit of sugar-making enterprises, and reasonably formulate the purchase price of sugar. In addition, the governments of the adjacent producing areas should coordinate with each other and maintain the appropriate level of purchase price.

The National Development and Reform Commission notice reiterated that the main producing areas should establish a mechanism for dynamically adjusting the price of sugar and the price of sugar to be linked to the sales price of sugar, and adjust the price of sugar in the second settlement, and consider the interests of sugar farmers and sugar companies in an integrated manner.

The National Development and Reform Commission also requested that if the selling price of sugar within the crop season rises more, the above price-linked linkage can be implemented in advance so that the sugar farmers can gain timely gains in the price of sugar.

The National Development and Reform Commission also requested relevant government agencies in major producing areas to strengthen price monitoring and production cost investigations, strengthen price supervision and inspections, severely investigate price violations such as pressure-level pricing and lift-up pricing, and severely crack down on fabrication and dissemination of price increases and collusion. Manipulating prices, malicious hoarding, and driving up prices for unfair price behavior.

According to a notice issued by the Yunnan Provincial Price Bureau of the Yunnan Province on October 9th, “Concerning the Perfection of Sugar Purchase Price Policy”, the first settlement price of the sugarcane sugarcane acquisition in Yunnan Province in 2011/2012 was determined at 420 yuan per ton. (Land price), linked to the average tax-inclusive sales price of Asian sugar (the "standard sugar") at 7,000 yuan per ton. The linked linkage coefficient is 5%; for individual sugarcane districts, the initial settlement price of sugar cane must be raised, and it must be submitted to the Yunnan Provincial Price Bureau for approval.

The bureau said that the actual sugar purchase price consists of three parts: the first settlement price of sugar purchase, the price increase of refined seeds (price reduction of eliminated varieties), and the secondary settlement price of sugar cane linkage.

In the 2011/12 crop season, the production of new sugar in the northern sugar beet production area has been fully carried out. The acquisition of sugar cane in the southern sugar cane production area and the start-up of sugar mills will soon begin.

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