June 30, 2005

China will work towards stable grain prices

The director of China's State Grain Bureau, Nie Zhenbang, has reiterated that the government would take active measures to create sufficient market space for farmers that would maintain stable grain prices.

At a national grain meeting, Nie said that during the summer-grain purchasing period, the reserved wheat at various localities would not enter the market, leaving market space for farmers to adjust the market supply and demand, and stabilise the grain price. Moreover, sales of surplus grains in stock of preceding years would be controlled by curbing grain auctions.

He urged various localities to take advantage of newly harvested grains on the market to augment local grain reserves for raising the market price.