Chinese government's intervention stabilises domestic grain prices

China's state-run grain enterprises purchased 287.6 million tonnes of grain from farmers in 2009, thereby stabilising domestic grain prices.

China had raised minimum purchase prices for wheat again in 2009, by 13-17%, according to the State Administration of Grain.

Administration figures showed state-run grain enterprises bought 163.2 million tonnes of grain last year.

The Administration has been promoting reforms among state-run grain enterprises. By the end of 2009, it reported 18,163 state-run grain enterprises, down 65% from 1998.