In recent years, the Chinese government has formed a series of policies to support grain production. The total grain output has risen to a higher level. It has not only satisfied the domestic need, but also led to structural surplus. The reasons lie in, first of all, the low quality of some grain varieties, which can not meet the need of the rising living standard of consumers; secondly, the limited stock capacity; and thirdly, the low conversion efficiency of grains. Viewing the present situation, there is no problem in realizing the balance between grain supply and demand. However, from the long term point of view, there will still be a big gap to fill. due to factors like the increasing population, the decreasing land area and the rising living standard of households. Therefore, from an overall point of view, the strategies to solve the discrepancy between grain supply and demand are to rely on domestic forces, strengthen grain production, restrict demand and stick to moderate and appropriate grain import.
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