June 14, 2011

China's grain demand is forecast to increase by five million tonnes annually, or about 1% of the nation's current production capacity, Vice Agricultural Minister Wei Chaoan said.

China faces the formidable task of ensuring sufficient grain supply as demand may grow faster than expected due to rising living standards, especially in rural areas, and rapid urbanisation, he said.

More frequent natural disasters pose challenges to the government's efforts to improve grain production capacity, he said, adding the tight grain supply is expected to last a long time.

China's grain output last year stood at 546.4 million tonnes, an increase of 2.9% from a year earlier.