The State Development Planning Commission and the State Grain Reserve Bureau will launch a nationwide investigation into grain prices from December to March in order to protect farmers' legitimate rights and interests.

The checkup will focus on the implementation of grain price policies at all State-owned grain purchasing and sales enterprises, according to sources with the commission.

Some purchasing enterprises have found fault with the quality of the grain and then forced a lower purchasing price, seriously infringing on the farmers' interests, according to official sources.

Others have gone as far as colluding with private grain producers and cheated farmers who have little information about setting prices conducive to higher profits.

To solve these problems, the government has made efforts to stop these unethical activities, including issuing requirements for quality standards and setting protective and unconditional prices for enterprises purchasing grain from farmers.

On the other hand, a few enterprises sell grain for less than the purchasing price in order to transfer losses to the government.

Some companies deliberately store up high quality grain for years and then sell the "old grain," which is eligible for government subsidies.

(China Daily December 2, 2001)