March 2, 2009

Grain reserves in China reached about 350 million tonnes in 2008, which accounted for 70 percent of its total annual grain consumption, according to an official from the State Administration of Grain.

The large reserve can be used to regulate grain supply and grain prices, in order to secure China's grain supply safety, even if the serious drought in northern China may result in lesser harvests this summer.

Zhang Xiaoqiang, an official from the National Development and Reform Commission said last April that the country had about 250 million tonnes of grain in hand, accounting for about 50 percent of the nation's annual grain consumption. Moreover, China had a good harvest for the fifth consecutive year in 2008.

China now consumes around 500 million tonnes of grain yearly, while there are only 250 to 260 million tonnes of grain available in the international market. Cheng Guoqiang, an analyst from the State Council, said it is important for China to maintain more than 95 percent of grain self-sufficiency as huge imports of grain into the country will upset the balance in the market and boost international grain prices.