April 24, 2012

China's grain stock may tighten on growing demand 

The agricultural product supply of China will further tighten, despite years of bumper crop, according to a government researcher, as quoted by state-owned China.com.cn.

Rapidly rising food demand has shown no signs of slowing, said Guo Wei, head of the rural department of the State Council's research office.

China's 2011 grain output rose for the eighth consecutive year to a record 571.21 million tonnes, but the trade deficit for agricultural products is expected to widen, he said.

The deficit will likely widen to about US$40 billion in 2012 from US$34.12 billion in 2011, the Chinese Academy of Social Sciences, a state-controlled think tank said in a report.

China is the world's top importer of cotton and soy and is also a major sugar importer.