SAG is the functional agency of the state council which was established in the year 1999 on the basis of grain reservation. The SAG falls under the national development and reform commission abbreviated as NDRC that is responsible for macro-regulation of national grain distribution. It provides the set of rules, regulations and guidelines to be adhered and followed for the proper development of the grain industry and also administers the grain reservation properly. Right from the day one of introduction, SAG has been moving towards the vision of promoting the proper steady reformation of the grain market to improve the grain macro-control that steers across the complete industry.
The economic, legal and administrative measures seem to have a market which has different business modes to supervise the laws and regulations for the logistics and the way the harvested grains have been properly processed. This seems to promote the grain production, raising the safety features for the national grain security. This proceeds for the promotion of self-sufficiency within china. China does shoe a steady graph in the promotion part of the grain production which would eventually do a proper supply and demand for the improvement of the system. This comes under the macro-control which SAG takes care of.