The price adjustment fund is a special fund used by the government to regulate market prices, balance supply and demand or support operators. 1988 the State Council clearly put forward the requirement of establishing non-staple food price adjustment funds in cities across the country in the "Notice on Trial Implementation of Appropriate Subsidies for Employees from Retail Price Changes of Major Non-staple Foods". Article 27 of the Price Law stipulates: "The government can establish an important commodity reserve system, set up a price adjustment fund, regulate prices and stabilize the market." Up to now, most cities in China have established the system of non-staple food price adjustment fund.

Setting range

The price adjustment fund is set up to adjust some commodities that are prone to market price fluctuations and have a significant impact on the national economy and people's livelihood. These commodities mainly include agricultural and sideline products such as grain, cotton, oil, meat, eggs, vegetables and sugar. At present, the established price adjustment funds in China mainly include non-staple food price adjustment fund and grain risk adjustment fund.

collect

From the experience of various places, the main sources of price adjustment funds are: original price subsidies for staple foods such as grain, vegetables and pork or government budget allocations; Collecting from the society mainly involves hotels, tourism, construction, catering, service, industry and commerce, transportation and other industries.