June 20, 2011


China likely to reap bumper summer grain harvests


China is expected to achieve bumper harvests of summer grain despite recent drought and the following flood in the middle and lower reaches of Yangtze River, and this may help alleviate inflation pressure.


Statistics from the Ministry of Agriculture show that the country has reaped 70% of winter wheat and is predicted to harvest summer grain on 27.67 million hectares of farmland, up more than 200,000 hectares over last year.


As winter wheat's average yield is predicted to be higher than last year, wheat output this year is likely to realise on-year increase for the eighth straight year, the ministry said.


The bumper harvests after the drought are favourable to easing inflation and boosting confidence in grain production, analysts said.


Major wheat producing provinces including Shandong, Henan and Hebei had suffered severe drought in the past several months. The government immediately carried out drought-relief measures and took moves to stabilise production such as raising the protective minimum purchase prices of wheat and granting subsidies for purchase of farm machines.


Summer grain usually accounts for about 25% of annual grain production. Therefore, the full year's grain output still depends on autumn grain with majority of paddy rice.


Mao Liuxi, an official with the China Meteorological Administration, predicted that weather conditions would not have much impact on this year's grain production.

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