May 25, 2012

China to impose wheat stockpiling plan for 2012

China will impose the state stockpiling programme for the wheat harvest this year from May 21 to September 30, the National Development and Reform Commission announced on its website Wednesday (May 23).

The stockpiling work will be undertaken in six major producing provinces of Hebei, Jiangsu, Anhui, Shandong, Henan and Hubei if market prices fall below the floor purchase price of RMB2,040/tonne (US$321.49) in that period.

China is expected to begin the summer grain harvesting soon. The Ministry of Agriculture earlier predicted that the country would achieve bumper summer harvests this year given better-than-normal weather conditions and rise of planting area.

Summer grain crops mainly include winter wheat and early rice, making up over 20% of the full year's production.