Abstract: Implementing the state monopoly of purchase and marketing of major agricultural and sideline products is an important policy in our country from the beginning of the founding of New China to the early days of reform and opening up,which aims to meet the needs of socialist transformation and large-scale industrialization.It is also an important part of socialist planned economy in China.Due to the planned purchase and sale of important materials,the state monopoly of the purchase and marketing has objectively restricted the development of local agricultural,sideline and local specialty industries.Supply and marketing cooperatives in various places have explored commercial management for three types of materials outside the state monopoly of purchase and marketing within the permitted scope of national policies.Through sales and exports,they have not only contributed to the country's foreign exchange,but also improved farmers' lives to a certain extent,and have accumulated a material foundation,production experience and market relationships for social enterprises.The Hunan Province Supply and Marketing Cooperative's exploration of the commercial management oflitsea cubeba oil in western and southern Hunan within the scope permitted by national policies not only developed litsea cubeba oil into an important specialty commodity for Hunan Province's export to earn foreign exchange during the planned economy period,but also laid a good foundation for further development into an important rural industry in Hunan Province after reform and opening up.Studying the background,motivation and work effectiveness of the Hunan Province Supply and Marketing Cooperative in exploring the commercial management of litsea cubeba oil under the background of state monopoly of purchase and marketing and its impact on the development of township enterprises in the early stage of reform and opening up will have reference and inspiration for the development of rural collective economy in the current process of rural industrial revitalization.

Key words: state monopoly of purchase and marketing, Hunan Province Supply and Marketing Cooperative, litsea cubeba oil, agricultural and sideline local specialty products, commercial development