May 19, 2008

China releases grain reserves to quake-hit Sichuan

China will give its rice, wheat and edible oil reserves to Sichuan province to ensure sufficient supplies reach survivors and to help cap food price rises, state media said.

The China Grain Reserves Corp will release 100,000 tonnes of rice; 50,000 tonnes of wheat and 14,000 tonnes of cooking oil to areas close to the quake's epicentre area.  The 7.9 earthquake made its strongest impact in Sichuan and may have killed up to 50,000 people nationwide, Xinhua said.

The State Grain Administration also urged local authorities to guarantee enough food for survivors. Though the government has air-dropped 15 tonnes of rice and 10 tonnes of flour to stricken areas, relief workers said more food is needed.

China has imposed temporary price controls in quake-hit provinces, aiming to prevent hoarding and speculation after some local prices of food and transport spiked higher immediately after the quake.

Food prices have already helped drive the country's inflation to a nearly 12-year high. As a result, Beijing has made control of food price a priority for fear of social unrest.

COFCO Ltd, the country's largest grain trader, has donated edible oils as well as chocolate, to provide quick energy boosts for rescuers, to Sichuan, and the Jilin Grain Group in northeast Jilin province has donated 100 tonnes of rice.