June 15, 2007

Guangzhou gives out subsidies to families as pork prices remain high

In an indication of how seriously increases in pork prices have impacted Chinese consumers, Guangzhou's government is giving out a monthly subsidy of RMB 20 (US$2.6) to low-income families for the period from May to July.

The move is part of the city's efforts to minimize the negative impacts of rising commodities prices on low-income earners, said Chen Weiqiu, an official with the Guangzhou municipal government.

The city government has also been trying to diversify the supply channels for pork and other foods, while maintaining surveillance to check for signs of stockpiling by speculators and profiteers, he said.

Even though pork prices have dropped from the RMB 24 per kg in early May to RMB 13 per kg currently, many families still find it unaffordable, he said.

The higher pork prices also coincided with higher prices for vegetables, for which supplies have been affected due to the bad weather in the past few weeks. Prices for Chinese cabbage, for instance, have nearly doubled over the past week while prices of other vegetables have grown by 20 percent to 50 percent since last week.