In the face of rising prices China's central government has
ordered local departments to ensure there are sufficient grain
supplies.??
A circular issued by the State Council stressed tighter monitoring of
the market and any price changes to grain products. Figures from
the National Bureau of Statistics (NBS) indicate that China's grain
price increased by 4.7 percent in November. This is one percent
higher than October's rise.
The increase is indicative of a recovery in farm produce prices
after a decline in recent years and may help increase farmers'
income, said the circular.
China's grain prices have been low for several years and
dampened farmers' enthusiasm for the product. But good harvests for
three consecutive years and more attentive government policies have
seen prices rise. Grain output is expected to reach at least 490
billion kilograms this year. In 2005 it was 484 billion
kilograms.
The rising price of grain products, although recovering from a
very low level, has alerted the government to possible panic in the
market. Measures should be taken to guarantee the grain supply and
maintain prices at a reasonable level to ensure the lives of
low-income families are not affected, said the circular. Priority
should go to colleges, factories and mines as well as low-income
urban residents, it adds.
The circular calls for strict implementation of subsidies for
low-income urban residents and poorer college students. It also
advocates closer inspection of large-scale wholesale grain markets,
supermarkets and those selling farm produce to prevent goods being
forestalled, price hikes and the sale of fake and substandard
products.
(Xinhua News Agency December 14, 2006)