February 10, 2004

China 2003 Grain Stock At Historical High

China's grain stock in 2003 reached historically high level, despite a drastic difference in demand and supply figures, Chen Xiwen, deputy director of the office of Central Financial Work Leading Group, said Monday at a press conference held by the Information Office of the State Council.

He predicted that the demand and production gap would narrow if the grain output in 2004 would hit the central government's expectation of 455 billion kilograms.

Latest official statistics showed that China's total grain production reached 430.65 billion kilograms last year, dropping 26.4 billion kilograms, or 5.8 percent, over the previous year.

According to Chen's estimation, China's actual demand of grains totaled 485 billion kilograms during the year.

China's grain output has been declining since 1999, which resulted from reduced planting areas and consequent natural disasters, said Chen, adding that low efficiency of planting methods and lack of enthusiasm of Chinese farmers also contributed to the decrease.

China issued a document on policies for boosting the growth in the income of farmers Sunday, urging stronger support for grain production in major grain-producing areas to help raise the income of grain farmers.

Resources will be concentrated for the construction of a number of state-class high-quality special grain production bases beginning this year, according to agricultural officials.