CHENGDU, Jan. 19 (NBD) -- The importance of "promoting the agricultural supply-side structural reform" has been lifted to a new height.

The agricultural supply-side structural reform will be hugely deepened this year. The corn destocking will be reinforced, in particular.

The smooth promotion of land circulation and centralization constitutes a significant precondition for the fulfillment of agricultural supply-side structural reform, said a research report by Founder Securities.

According to Pacific Securities, Chinese government will proceed with policies in price reform, land circulation reform, biotechnology development, processing industry development and supervision enhancement so as to solve multi-level problems facing the supply-side structural reform, including large stockpiles, high cost and poor quality assurance.

With regard to processing industry for agricultural products, the policy to increase the subsidies for processing, storage and freight charge is likely to be issued and take effect, which will improve profitability. Further marketization of grain price will facilitate the price reduction of raw materials, hence lower cost.

In addition, once the policy for industrialization of genetic breeding technology is formulated, the seed industry will be greatly promoted.

Seed industry, corn destocking, land circulation, poultry and animal husbandry and agricultural mixed ownership reform can generate important investment opportunities, according to some analysts.

Email: gaohan@nbd.com.cn