February 15, 2008

China tames possible surges of grain and meat prices in disaster areas

Supplies of grain, meat and other commodities are sufficient in China, averting possible price hikes after the destructive snowstorm, the government said.

The National Development and Reform Commission (NDRC) figures indicated the prices of pork, egg and vegetables fell, while grain and oil prices remained stable in the calamity-stricken provinces of Hunan, Hubei, Guizhou and Henan on Wednesday.

Pork fell by as much as 6.7 percent in some areas, according to the NDRC statistics.

Huang Hai, Ministry of Commerce assistant minister, said that the snow may have little impact on the overall market. He assured that prices of commodities will continue to come down as the weather warms.

To ensure sufficient grain supply, the Chinese government implemented efforts which included the freezing prices on a number of goods, to boosting farm subsidies and curbing the industrial use of corn.

Furthermore, the government gave go signals to various departments to revive the production of crops, livestock and poultry.

Some regions have also launched emergency mechanisms to solve the problem of food shortage.

China allocated tonnes of state-reserved meat to the disaster-hit provinces of Guizhou, Anhui and Hubei during the recent Spring Festival.