June 18, 2009

China will step up its monitoring of the grain market in response to the minimum purchase prices set by the government, the National Development and Reform Commission and the State Administration of Grain said in a joint statement Wednesday (Jun 17).

The authorities will centre on those who push down prices and give farmers short weight in the four months through the end of October. The focus of the checks will be on the purchase of wheat and reserve corn in major grain production regions, according to the statement.

Local grain authorities will also carry out field inspections at major grain depots during the annual purchase period, which usually stretches from June to September.

Despite harsh weather conditions that include droughts in northern China and rain and relatively low temperatures in the southern region, China will still see a bumper grain harvest this year, which is the sixth consecutive year.

China has already harvested 80 percent of its wheat crop and the country is expected to garner 122.5 million tonnes of summer grain this year, according to the Ministry of Agriculture.