April 23, 2010

 

China' grain production estimated to take a downturn

 
 

The frost damage in north China is expected to affect the growth of wheat with harvest season in summer and so far, Heilongjiang, Hebei, and Shandong have submitted possible losses from the disaster to the concerned authorities.

 

The southwest region, which is experiencing drought, contributes to 15% of the nation's annual grain production and if its grain output falls 10%, the nation's total will fall 1.8%, according to a report by United Securities. The north China and northeast China contribute to over 50% of the nation's annual grain output and if grain output there drops, the nation's total will fall to a large extent. Notably, the aforesaid provinces are all members of the nation's top five grain producers.

 

"The drought in southwest China drew the attention of the public in recently months and actually we filed a report with the Ministry of Agriculture (MoA) as early as February, suggesting it pay more attention to frost damage as well as grain output in north China,'' Liu Buchun, a researcher at the Chinese Academy of Agricultural Sciences (CAAS) said. ''It has been unknown whether the grain output there will fall or just maintain at a similar level with that in 2009, but we expect concerned authorities to take measures to reduce related loss."

 

"It is a hard year for the nation's agriculture industry and the MoA has submitted a report to the State Council, the Chinese cabinet, expecting the latter to take measures too," said a senior official at the National Development and Reform Commission (NDRC), the top Chinese economic planner. The MoA has sent special work teams to supervise spring ploughing in north China and farmers in northeast China are encouraged to expand planting areas.

 

Meanwhile, grain prices are predicted to rise this year. There is great possibility for the prices of the nation's agricultural products to increase this year, according to a report the CAAS released on April 20. The average growth of agricultural product price is estimated at about 4% and that of grain production price is predicted to exceed 5%.

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