April 30, 2007

China to retain minimum grain prices

China will maintain the minimum purchase price for grain not lower than the 2006 level in 2007, sources with the National Development and Reform Commission said on Sunday ( Apr 29).

Since 2004, China has carried out a bottom price system for grain procurement to ensure stable grain production and protect farmers' enthusiasm for farming.

China saw its third year of consecutive growth in grain output last year.

The NDRC sources said the bottom price system for grain procurement would also be conducive to stabilizing grain prices on the domestic market.

Grain prices rose 6.4 percent in March

The increase in grain prices is mainly responsible for a 2.7-percent rise in China's consumer price index in the first quarter.