In the fiery red era of the heavens, refrigerators are refreshed daily.

Chapter 11.11. Pricing through Official Channels

Gu Yongkang paused, then emphasized, "Why is it prohibited? Because there's a huge difference between the government-set purchase price and the selling price of medicinal herbs."

This difference represents the necessary accumulation by the state for developing medical services and ensuring the supply of medicines.

If someone bypasses the state to acquire assets and engages in private high-price transactions, they are essentially embezzling this portion of the country's accumulated wealth, which constitutes serious 'speculation and profiteering'!
Once discovered, the consequences are severe, ranging from confiscation and fines to legal liability!
This red line is absolutely not to be crossed!

Yang Guangming felt a chill and quickly nodded: "Thank you for reminding me, Director Gu! My relative definitely doesn't want to take this risk, which is why I want to find a legitimate channel."

"So... if my relative takes the items to a legitimate place like your Jishetang to sell, is that completely legal and compliant, and without any worries?"

"In principle, yes."

Gu Yongkang nodded slightly, "As long as the source can be clearly explained, such as whether it is a family heirloom, left by ancestors, or has legal proof of acquisition, we will purchase it according to the grade and price stipulated by the state and issue formal invoices, then there will be no problem."

but……"

He then changed the subject, saying, "During the acquisition process, we will also conduct necessary verification and registration; this is a procedure."

"Understood, we will definitely cooperate with the registration."

Yang Guangming expressed his understanding and then asked, "Director Gu, could you please tell me the current market price for ginseng, bezoar, deer antler, and rhinoceros horn? That would give my relative some idea of ​​the market."

Gu Yongkang did not immediately answer the price, but instead addressed another key point in Yang Guangming's question: "As for the rhinoceros horn you asked about..."

He shook his head slightly. "Rhinoceros horn is not produced domestically, and the country has no formal plan to import this medicinal material."

Therefore, rhinoceros horn is not included in the state's "unified purchase and sale" catalog, and the state has not set a unified purchase price.

To the best of my knowledge, neither Jishetang nor any other state-owned Chinese medicine pharmacies in Shanghai have ever officially purchased rhinoceros horn as a medicinal ingredient.

He paused, seemingly choosing his words carefully, and lowered his voice even further:
"Rhinoceros horn, especially the Sumatran rhinoceros horn you mentioned, is indeed a very rare medicinal material in traditional Chinese medicine, with unique medicinal effects."

Its transactions... usually only exist in specific, very small, private channels.

Prices fluctuate wildly, mainly depending on quality, but even more importantly, on whether the buyer has an urgent need.

Gu Yongkang's gaze, peering through his glasses, carried a calm acceptance of the ways of the world.

"If it is indeed a top-grade Sumatran rhinoceros horn slice, in perfect condition, based on some information I have... that is not publicly available."

The price in private transactions is roughly between 100 and 150 RMB per gram.

However, this is only for reference and is not valid as there are no national regulations.

And I want to emphasize again that this kind of transaction is not protected by law, and the risk is borne by the buyer.

Yang Guangming's heart skipped a beat.

One hundred to one hundred and fifty per gram!

This is even higher than he expected!
This means that the 30 grams of rhinoceros horn slices in his hand have a potential value of three to four thousand five hundred yuan!
In an era when apprentices earned a monthly salary of a dozen yuan and third-level workers earned forty or fifty yuan a month, this was an astonishing sum of money!

Moreover, this item is not on the state-purchase catalog. Although private transactions are discouraged, they are different in nature from reselling state-purchased goods, and the risks are relatively controllable. The excuse of "family heirloom" is also easy to use to cover it up.

He suppressed his excitement and continued to humbly seek advice:

"Thank you for your guidance, Director Gu. I have taken note of everything you said."

Could you tell me about the state purchase prices for ginseng, deer antler, and bezoar?
I also asked my relatives to compare.

Seeing that Yang Guangming was sincere and asked about open policies, Gu Yongkang opened a drawer and took out a thick compilation of documents with worn edges.

He expertly turned to a page, pointed to the table and data, and introduced it in his characteristic, emotionless tone:
"Let's talk about bezoar first. The domestic production of natural bezoar is very low, and we mainly rely on imports."

The state's purchase price is mainly based on the grade of the product.

He pointed to the text on the document:

"Premium grade ox gallstones: The whole stone must weigh more than 10 grams and have the 'black gold coating,' which is the black, shiny film on the surface of the gallstone, intact."

The national benchmark purchase price is 65 to 80 yuan per gram.

Grade 1 bilirubin: 5 to 10 grams per whole capsule. Purchase price: 40 to 60 yuan per gram.

"This is implemented in accordance with the 'Notice on the Graded Purchase Price of Domestic Bezoar' (Shang Yao Cai Zi [1963] No. 118) jointly issued by the Ministry of Commerce and the State Administration of Pharmaceutical Materials."

[Note: The price is not fictitious. Historical evidence:]
(1975) - Cairang Zhaxi, a herdsman from Huangyuan County, Qinghai Province, handed over 3.2g of premium bezoar and received a purchase price of 224 yuan (70 yuan/g).

The same batch of bezoar was allocated to Tongrentang at a price of 384 yuan (Tongrentang Raw Material Warehouse Record No. 1975-097).

"The acquisition and management of deer antlers are more stringent."

Gu Yongkang turned to another page, “According to the ‘List of Rare Medicinal Materials for Unified Purchase’ promulgated by the State Planning Commission in 65, the ‘three unifications’ policy was implemented for deer antlers: unified purchase (can only be sold to state-owned medicinal material companies), unified grading (strictly graded according to the standards issued by the ministry), and unified price (nationally unified benchmark purchase price).”

He pointed to the specific price list on the document:
"Premium Blood Velvet Wax Slices: Limited to the tip section of the velvet within 1.5 cm, with a completely waxy texture and no bone formation."

The purchase price is between 18 and 22 yuan per gram.

Grade 1 Blood Antler Slices: Contains some wax rings.

The purchase price is 9 to 12 yuan per gram.

Second-grade powder flakes: without wax.

The purchase price is 3 to 5 yuan per gram.

This price standard was further refined and clarified by the Jilin Provincial Pharmaceutical Company in the "Notice on Adjusting the Grade Difference Rate for Deer Antler Purchase" (Jilin Pharmaceutical Document No. 44 [1964]) issued in 64, based on national guidelines.

Gu Yongkang put down the documents, looked at Yang Guangming who was listening attentively, and unusually offered a few more words of explanation:

"Young comrade, you may not understand why there is such a big difference between the government's purchase price and the final price that ordinary people pay for medicine."

For example, these premium wax tablets might cost the government twenty yuan per gram, but in Shanghai's specially supplied pharmacies, they could easily sell for over a hundred yuan per gram.

Where did the boss's price difference go?

He asked and answered himself, his tone carrying an understanding of national policy and a hint of barely perceptible helplessness:

"This price difference is mainly used for several purposes:"

Part of it is subsidies given to hunters or deer farms that provide medicinal herbs, as well as industrial products (such as agricultural machinery and fertilizers), which is called the 'industrial product price scissors'.

Another portion is incorporated into the country's foreign trade stabilization fund to compensate for the import of those sophisticated equipment made in Arabia.

The country has its own difficulties and overall plans, which we should understand and support.

Yang Guangming nodded repeatedly, indicating his understanding of the national policy.

[Note: The price is not fictitious. Historical evidence:]
Yanbian Prefecture Archives (1973) - Jin Yongqi, a hunter from Helong County, handed over 12.3 grams of top-grade wax flakes → received 258.3 yuan (21 yuan/gram) in purchase price.
The same weight sells for 2215 yuan at the Qiaohui Store in Shanghai (a price difference of 8.6 times).

Gu Yongkang continued, "As for the price of ginseng, there are too many factors that affect the price to explain in a short time. We need to see the actual product to make a clear statement."

The price information provided by Gu Yongkang is extremely valuable!

The prices of premium-grade bezoar (65-80 yuan/gram) and blood velvet wax slices (18-22 yuan/gram) were particularly attractive, but they also made him more aware of the risks involved—the state's unified purchase and sale meant that the source would inevitably be strictly inspected.

The ginseng, deer antler, and bezoar in his refrigerator were beautifully packaged and even had certificates of authenticity, but they were completely useless!
The origins of these items, in Shanghai in 1969, simply cannot withstand any scrutiny.

Once rigorously investigated, one cannot perfectly explain oneself, and there will always be loopholes.

In comparison, Sumatran rhinoceros horn slices, which are not on the national procurement list and are not imported by the state, are a godsend!
It carries the least risk, has the highest unit price (100-150 yuan/gram), and is the easiest to find an excuse for – a simple "passed down from my ancestors" that leaves no room for proof.

Yang Guangming made a decision in an instant.

A grateful and relieved smile appeared on his face as he sincerely said to Gu Yongkang:
"Director Gu, you really taught me a lesson today, thank you so much!"
You explained it so clearly, I can now explain it to my relatives when I get back.

The government strictly regulates ginseng, deer antler, and bezoar, and the procedures are complicated. I guess my relatives are also afraid of not being able to clearly explain their origins and getting into trouble.

But that rhinoceros horn you mentioned…

(End of this chapter)