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"Household Appliances to the Countryside" scheme promotes production and sales
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13:44, June 08, 2009

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"Household Appliances to the Countryside" scheme has drawn wide attention from the public since its implementation in Feb, 2009. According to an interview with the responsible person for the Dep. of Economic Development at the Ministry of Finance some relevant questions about the scheme.
Allowances grew by 74%
Q: What is the effect of the "Household Appliances to the Countryside" scheme?
A: The scheme has been quite effective since its implementation. First of all, the sale of products involved in the scheme has been increasing rapidly. Sales volume of such products increased from 880 thousand to 2.23 million between Feb and May, a monthly increase of 36%. Sales revenue increased from 1.3 billion yuan to 4 billion yuan, an increase of 45%.
Secondly, allowances have also been growing rapidly. Allowances of the scheme increased from 53.47 million yuan to 280.32 million yuan between Feb and May, an increase of 74%.
Thirdly, Production of products involved in the scheme has been increasing steadily. The number of companies winning bids has increased since Feb. Enthusiasm in production has been rising. Total production volume from Feb to May was 22.91 million units, a monthly increase of 2.09 million units.

Fourthly, product types and producers have become more diversified. Peasants now have a large choice of type and price. At the same time, more competition between producers can help steady prices and increase quality.
Increase in both production and sale of products involved in the scheme will definitely promote the growth of raw material industry and employment which will further promote the growth of electricity consumption as well as other kinds of consumption.
Sale prices can be no higher than bid prices
Q: How are the prices of products involved in the scheme determined?
A: The ceiling prices of products in the scheme are as follows: TVs 3500 yuan, fridges 2500 yuan, cell phones 1000 yuan, washing machines 2000 yuan, wall-hanging air conditioners 2500 yuan, packaged air conditioners 4000 yuan, electric tank water heaters 1500 yuan, gas water heaters 2500 yuan, solar-powered water heaters 4000 yuan, computers 3500 yuan, microwaves 1000 yuan, induction cooker 6000 yuan.

Due to the increase in product types, ceiling prices for several types of products have been raised. Some high performance products can now be involved in the scheme. A basic rule of the scheme is that the bid prices are the ceiling prices. Firms can change sale prices according to changes in cost, demand or supply but the sale prices can never be higher than the bid prices.
At present, the allowance system of the scheme can technically prevent the sales prices from being higher can the bid prices. Consumers can't have access to the allowance system if the sales prices are higher than the bid prices. If peasants can’t get allowance for products they buy, they will return the products. If stores take advantage of peasants who lack knowledge about the policy and sell products to them for prices higher than the bid prices, they will be suspended from selling such products or even lose their qualification for selling such products and their deposits.
High energy-saving standard
Q: What energy-saving measures are involved in the scheme?
A: The scheme requires quite a high energy-saving standard when buying from suppliers. This will make products in the scheme a good example for energy-saving household appliances. Fridges, refrigerating cabinets, TVs in the scheme consume 20% less electricity than similar products. Energy efficiency ratio of washing machines is two or three degrees higher than the market average. Peasants can reduce costs and financial burden if they buy products in the scheme.

Q: What new measures have been utilized during the implementation of the scheme?
A: Eleven departments, including Ministry of Finance and Publicity Department of the CPC Central Committee, jointly published the announcement of carrying out the event of "2009 Household Appliances to the Countryside Scheme Promotion Month". The aim of the event is to increase the public's understanding and support of the scheme, to increase the peasants' consciousness and ability to protect their rights, to increase the sense of responsibility of firms, stores and relevant government organizations and to build a nice social atmosphere for the implementation of the scheme.

In order to better supervise the implementation of the scheme, the second departmental meeting of the scheme decided to form a supervising team to carry out special supervisions on quality, prices, after-sale service and the granting procedure of allowances. The team will make sure that allowances are provided to peasants in time and in the full amount and that this scheme, which is favorable to peasants and can also promote domestic demand, is well implemented.

By People's Daily Online

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