September 25, 2007

China to increase state reserves for soy, vegetable oil

China will increase its state reserves for soy and edible vegetable oil to a proper level to guarantee the market supply, the State Council said in a statement published late Monday (September 24).

The statement, a wrap-up of the government's earlier policies to boost oilseeds production, also said China will tightly control exports of oilseeds and vegetable oil.

Volatile domestic food prices, especially those of vegetable oil and meat, pushed China's consumer-price inflation to 6.5 percent in August, the highest rate in more than a decade.