May 19, 2008

No grain price hike in China amid earthquake

The earthquake aftermath in Sichuan Province will not increase China's grain price, revealed Cheng Guoqiang, Director of the Department Of Market Economy of the Development Research Centre of the State Council in Guangzhou.

Cheng said that the earthquake centred on Sichuan's mountainous areas rather than in the grain production zones. He added main communication arteries in China were not affected, overall transportation conditions remain normal as the country uses air deliveries to solve the grain supply problem. Currently, China's grain market is stable and is expected to operate well in the future, he said.