Apart from progressive taxation on each household's harvest, the state introduced a system of compulsory state purchases of grain at fixed prices to build up stockpiles for famine-relief and meet the terms of its trade agreements with the Soviet Union. Together, taxation and compulsory purchases accounted for 30% of the harvest by 1957, leaving very little surplus. Rationing was also introduced in the cities to curb 'wasteful consumption' and encourage savings (which were deposited in state-owned banks and thus became available for investment), and although food could be purchased from state-owned retailers the market price was higher than that for which it had been purchased. This too was done in the name of discouraging excessive consumption.
Apart from progressive taxation on each household's harvest, the state introduced a system of compulsory state purchases of grain at fixed prices to build up stockpiles for famine-relief and meet the terms of its trade agreements with the Soviet Union. Together, taxation and compulsory purchases accounted for 30% of the harvest by 1957 leaving very little surplus Rationing was also introduced in the cities to curb 'wasteful consumption' and encourage savings (which were deposited in state-owned banks and thus became available for investment), and although food could be purchased from state-owned retailers the market price was higher than that for which it had been purchased. This too was done in the name of discouraging excessive consumption.