China mulls equal legal status for farmers" specialized cooperatives with otmagic bands shades of greenher market entities

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BEIJING - China"s top legislature Friday heard a report of the draft revision to the Law on Farmers" Specialized Cooperatives.

According to the draft, farmers" specialized cooperatives in China will share equal legal status with other market entities, and will be able to invest in enterprises in accordance with law.

The report was submitted to the bi-monthly legislative session of the Standing Committee of the National People"s Congress (NPC), which opened Friday.

Members of the cooperatives can invest non-monetary assets that can be evaluated and transferred, such as their land management rights and forest rights, the draft revision reads.

Legislators suggested registration offices inform agricultural and forest departments of the basic data of the registered cooperatives, in order for the departments to better guide, support and serve the cooperatives.

A few specific provisions to support the cooperatives have been added, including that electricity used during preliminary processing of products will be charged according to agricultural production price standards, which are lower than the price for industrial production.

The draft revision was revealed at the NPC Standing Committee"s bi-monthly session in June, when it received a first reading, and is expected to be passed this time.

Since the law took effect in 2007, it has played an important role in increasing rural incomes, promoting new agricultural management systems and boosting modern agriculture.

Through specialized cooperatives, farmers engaging in the same kind of agricultural production are able to pool resources and make more money.


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