March 25, 2011

China is not in face of prevailing grain shortage now, said Chen Xiwen, director of the State Council's executive office on rural policy, at a meeting held on Thursday (Mar 24).

Despite the price fluctuation in domestic grain market, China can secure sufficient grain supplies even under a volatile international grain market, he added.

Soaring global oil prices and high labour and material costs in recent months have largely pushed up China's farm produce prices. However, Chen said that the present grain price rise in China is reasonable, otherwise Chinese farmers may find no impulses for grain production.

China now boasts a more diversified grain reserve system than the past, which contains not only the state reserve system, provincial or sub-level reserve systems, but also the inventories stored by grain processing and trading enterprises and even stocks in grain growers.

In recent years, the country has lifted the minimum grain purchase prices each year. The important thing is to keep the grain price at a reasonable level, he added.