August 24, 2007

Drought and floods may roll back China's harvest 10 percent

The autumn grain crop harvest in China is projected to be 10 percent less than usual levels, bringing pressure to bear on food prices which has already brought a spike in inflation this year.

The autumn harvest is critical as that is when crops such as corn, rice and soy are to be harvested, usually in late September.

According to reports from Chinese newspapers, China is struggling to keep farmland above the 120-million hectare level. Drought had hit about 11 million hectares of arable land in China so far this year, 1.7 million hectares more than last year, while about 8 million hectares had been flooded.

Vice premier Hui Liangyu urged the country to do everything possible to maximise the autumn grain harvest, despite the natural disasters.

Earlier news reports stated that the total Chinese grain output would not be affected by natural disasters.