Insight
common herbicide is Bayer’s Sigma (Mesosulfuron). ADAMA
is promoting its combination of Diflufenican and Isoproturon.
Most farmers stated that if the soil in wheat fields is well treated
with herbicides, no further applications are needed. Otherwise,
pesticides must be applied, which will depend on the weather, as
they are not appropriate in cold weather. However, when spring
comes, weeds are difficult to control with ordinary pesticides.
Issue 2: High yield but low income (mainly for
japonica rice)
This year, early indica rice in some double-cropping rice
growing areas in Anhui Province failed to produce full grains,
leading to lower quality and decreased yields. The yield of early
indica rice per mu in Anhui was 439.62 kg, a decrease of 24.09 kg
or 5.2% compared to the previous year. The overall average price
of early indica rice sold by farmers was 112.82 yuan /50 kg, down
1.99 yuan or 1.73% from 114.81 yuan/50 kg last year.
The supply of japonica rice outstripped demand this year and
the purchase price of japonica rice dropped by an average of 5
yuan/50 kg compared to last year. The average purchase price
of dry rice in the regions surveyed was 125 yuan/50 kg, and rice
at harvester with a 25% water content was 100 yuan/50 kg, as
well as 110 yuan/50 kg for 20% water content. Compared to the
same period last year, the average price drop was 4 yuan/50
kg. Although grain depots in these regions began to use private
contracting, the sale of rice was not satisfactory. For example, the
town of Feixi opened only one grain depot with a storage capacity
of 2,000 tons, however, there are 10 to 20 large-scale growers in
this region with a total of 20,000-30,000 mu of paddy fields. The
year 2019 was a good harvest year. The average yield of japonica
rice was 600-650 kg/mu and the highest yield reached 750 kg/
mu, meaning that the opened grain depot could be filled up with a
yield of 1,000 mu from one large-scale grower. Total production in
this region was conservatively estimated at 12,500 tons. Except
for the 2,000 tons purchased by the local grain depot, remaining
production had to be sold to grain dealers in other provinces, such
as Shandong, or to rice processing factories and distilleries. Grain
66 Annual Review 2019
depots purchased japonica rice at a government-protected price
of 1.3 yuan/kg this year, while the price of japonica rice sold in
other outlets fluctuated according to the market. In a good harvest
year, such as 2019, the unit price of 1.00 to 1.2 yuan/kg could be
regarded as a good offer. For large-scale growers with 1,000 mu
of paddy fields, if the grain price falls by 0.05 yuan/kg, they may
suffer a net loss of at least 120,000 yuan.
Glutinous rice recorded a good selling price this year. Prices
in planting regions of glutinous indica and japonica rice were
generally between 0.85 yuan/kg and 0.925 yuan/kg, much better
compared to indica rice and japonica rice. Glutinous rice is not a
major grain variety and is not covered by any rice protection price
policy. Consequently, it is greatly influenced by the demand from
the glutinous rice processing industry. Glutinous rice is a main raw
material for cake processing, brewing and food industries. Despite
the fact that demand for glutinous rice has increased in recent
years, such demand can hardly support large-scale production.
The glutinous rice growers interviewed shared a common view
that they tended to increase their growing areas in 2020. However,
some farmers were worried that if all farmers went mad and
increased their growing areas, the glutinous rice industry would
meet the same fate as the japonica rice industry in 2019, in other
words, high yields but low incomes. In our opinion, it is wise to limit
the growing area of glutinous rice if no varieties with high yields
and good disease resistance can be selected. If orders can be
acquired from glutinous rice processing companies, the planting
of glutinous rice can be adapted according to demand and orders,
provided that quality meets the requirements of buyers.
Issue 3: Increasing investment in agri-inputs
According to our survey, the cost of land rental is generally
between 500 yuan/mu and 1,200 yuan/mu, accounting for almost
half or more of production cost. Other main costs include seeds
at 40 yuan/mu, fertilizers at 400-500 yuan/mu (based on double-
harvest rice or single harvest rice and single harvest wheat),
labor for pesticide application and weeding at 3,000 yuan/mu,
herbicides at 150 yuan/mu. Based on a double-harvest, two soil