January 4, 2008

China government aims to guarantee stable '08 grain prices

China aims to guarantee the stability of its grain market in 2008 through more macro controls, the State Grain Administration said on Friday (January 4, 2008).

"Maintaining the stability of grain market and grain prices is (our) top priority this year," it said in a statement published on its Web site.

China has introduced a series of measures to curb its grain exports, including grain export quotas and export taxes, after its consumer price index growth reached an 11-year high of 6.9 percent in November, driven by food-price inflation of 18.2 percent.

A surge in international grain prices has put China under increasing pressure from high inflation, although its annual grain output in 2007 is expected to have increased for a fourth year in a row.