December 9, 2010

China's grain reserves at 35% of annual consumption

China's reserves of grains are currently equivalent to around 35% of annual consumption, around double the levels of most countries.

The grain stockpile is the "safety index of grains reserves." A higher index value indicates greater food security.

There have been concerns that China may have experienced a significant drawdown in its grains stocks in recent months amid rising food prices and gains in broader inflation.

"There are sufficient reserves to ensure national food security," said Songseng He, director of state-run China Grain Research and Training Centre.

He said China is keeping around three months' supply of grains in major producing regions and six months' supply in consuming regions.

China has taken several measures to keep a check on food prices, and both national and provincial Grains Emergency Response Plans are in place to meet exigencies.

Around two thirds of the increase in China's grains production in recent years is due to higher yields, and one third to more acreage, he said.

China's grains production has been rising for the last seven years and has been above 500 million tonnes for around four years, he added.