"China can not expect to be immune to the world as the world grain prices change," said Ning Gaoning, president of China Oils and Foodstuffs Corporation (COFCO), during the 11th CPPCC annual session.

The soybean matters in solving China's grain issue. On one hand, China has adequate supplies of grains such as wheat and rice along with serious shortages of soybean, 70 percent of which must be imported from foreign countries. On the other hand, soybean has always been categorized as an oil crop instead of a grain crop, Ning told reporters.

To cope with the increasing grain prices, China must improve its planting structure and promote industrialized operation of breeding, Ning suggested.

China should draw on the experience of Japan and establish a soybean reserve mechanism as soon as possible. "Japan imports a large amount of rice from the US every year. The world rice price jumped almost 50 percent last year, which has not had a great impact on Japan's rice imports thanks to its grain depots and distribution system based in the US," Ning explained.

Fore more details, please read the full story in Chinese. (http://www.dfdaily.com/node2/node27/node119/userobject1ai61384.shtml)

(China.org.cn March 12, 2008)