---
title: "How Does Salt Reform Ensure Supply Security? Liberalizing Salt Prices Does Not Mean Liberalizing Monopoly"
description: "According to national requirements, from January 1 next year, China will liberalize ex-factory, wholesale, and retail prices of salt, allowing enterprises to set prices independently based on production and operation costs, salt quality, market supply and demand, and other factors. How does the salt reform ensure salt quality and supply security? In response, the Guangdong Provincial Salt Administration, the Provincial Food and Drug Administration, and the Provincial Administration for Industry and Commerce recently jointly issued the \"Notice on Strengthening the Management of Salt Market Operations in the Province.\" The Notice clarifies that any unit or individual engaged in salt production or wholesale without a designated salt production license or salt wholesale license is considered unlicensed illegal operation."
author: "New Distribution"
publisher: "New Distribution"
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published: "2016-11-28"
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# How Does Salt Reform Ensure Supply Security? Liberalizing Salt Prices Does Not Mean Liberalizing Monopoly

> According to national requirements, from January 1 next year, China will liberalize ex-factory, wholesale, and retail prices of salt, allowing enterprises to set prices independently based on production and operation costs, salt quality, market supply and demand, and other factors. How does the salt reform ensure salt quality and supply security? In response, the Guangdong Provincial Salt Administration, the Provincial Food and Drug Administration, and the Provincial Administration for Industry and Commerce recently jointly issued the "Notice on Strengthening the Management of Salt Market Operations in the Province." The Notice clarifies that any unit or individual engaged in salt production or wholesale without a designated salt production license or salt wholesale license is considered unlicensed illegal operation.

According to national requirements, from January 1 next year, China will liberalize ex-factory, wholesale, and retail prices of salt, allowing enterprises to set prices independently based on production and operation costs, salt quality, market supply and demand, and other factors. How does the salt reform ensure salt quality and supply security? In response, the Guangdong Provincial Salt Administration, the Provincial Food and Drug Administration, and the Provincial Administration for Industry and Commerce recently jointly issued the "Notice on Strengthening the Management of Salt Market Operations in the Province." The Notice clarifies that any unit or individual engaged in salt production or wholesale without a designated salt production license or salt wholesale license is considered unlicensed illegal operation.

> **1**
>
> **Production and Wholesale Must Have Licenses**
The State Council's "Salt Industry System Reform Plan" clearly states that "with the core of ensuring salt quality safety and supply security, we will promote supply-side structural reform on the basis of adhering to the salt monopoly system," requiring the improvement of the designated salt production system, the wholesale monopoly system, and the specialized supervision system for salt. It stipulates that "based on the existing designated salt production enterprises and salt wholesale enterprises, no new designated salt production enterprises or salt wholesale enterprises will be approved." Any unit or individual that engages in salt production or wholesale without a designated salt production license or salt wholesale license is considered unlicensed illegal operation. Illegal production and operation of salt will be severely punished according to law.
The reporter noted that the Notice jointly issued by the three provincial departments clarifies that any unit or individual engaged in salt production or wholesale without a designated salt production license or salt wholesale license is considered unlicensed illegal operation. Illegal production and operation of salt will be severely punished according to law. Various commercial circulation enterprises that have not obtained a salt wholesale license may not wholesale salt to other business households, retail stores, catering units, food production and processing enterprises, and individuals.

> **2**
>
> **Price Gouging Will Be Punished**
The Notice requires that units or individuals engaged in salt retail, food processing, and catering services must purchase salt from enterprises that have obtained a salt wholesale license. Consumers should purchase salt from formal salt distribution channels.
The Notice clarifies that non-designated salt production enterprises are strictly prohibited from engaging in salt production and wholesale, and designated salt production enterprises may not use the assets and equipment of non-designated salt production enterprises for salt production. It is strictly prohibited to sell industrial salt, well and mine salt brine, industrial waste residue salt, feed additive sodium chloride, seawater aquaculture salt, agricultural salt, and other salt products as edible salt or use them in food production and processing.
The Notice further clarifies that when law enforcement departments at all levels in the salt and food and drug sectors find that market operators exceed the scope of their business license (salt wholesale, designated salt production), they must transfer the case to the industry and commerce department for handling. Salt, food and drug supervision, and industry and commerce (market supervision) departments at all levels will seriously investigate and deal with illegal salt production and wholesale, intentional hoarding of salt, price gouging, and disruption of salt market order according to national and provincial laws and regulations.
Any unit or individual engaged in salt production or wholesale without a designated salt production license or salt wholesale license is considered illegal operation.
Various commercial circulation enterprises that have not obtained a salt wholesale license may not wholesale salt to other business households, retail stores, catering units, food production and processing enterprises, and individuals.
Units or individuals engaged in salt retail, food processing, and catering services must purchase salt from enterprises that have obtained a salt wholesale license.
Intentional hoarding of salt, price gouging, and disruption of salt market order will be seriously investigated and dealt with.
**Source: Yangcheng Evening News**
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