June 17, 2010

The chief of China's National Bureau of Statistics urged local-level statistical authorities to provide accurate and timely grain production figures to policymakers.

Precise grain figures are key for the Communist Party and the government in ruling and ensure stability in the country, said Ma Jiantang.

The central government needed accurate grain output figures to judge supply and demand, and to make "scientific" decisions in relation to grain production, consumption and trade, Ma said.

China's recorded corn output for 2009 of 164 million tonnes was widely regarded by market participants as inaccurate. The market had anticipated lower output due to a severe drought in the northeast.

Expectations of shortages had pushed up corn prices to record high levels in some areas and prompted the country to import large quantities of corn for the first time in years.

Local governments often artificially inflate harvest figures, in part because of subsidies offered by Beijing. Current tight supply has prompted analysts to forecast large imports for this year. But government grain officials said the country held sufficient reserves to cover any deficit.