The average purchase and distribution prices for rice, wheat and
corn in China edged up in June from the previous month as a result
of rising global obsession with the development of bio-energy,
according to China's top economic planning agency.
The national average purchase and distribution prices for rice,
wheat and corns have both grown by 0.9 percent to 76.8 yuan and
79.7 yuan per 50 kilograms respectively, according to the latest
figures from the National Development and Reform Commission.
But the average purchase price for wheat dropped by 1.5 percent
to 72.6 yuan per 50 kilograms because of the new wheat lately put
to market.
Soybeans were purchased by grain crops firms at 143.2 yuan per
50 kilograms on average, up 3.1 percent from May, and sold at 148.3
yuan, up 3.4 percent.
In wholesale markets, the prices for rice, wheat, corn and
soybeans have grown by 2 to 17.6 percent over the same period of
last year.
The commission attributed the price hikes to the rising world
demand for corn and soybeans which have been used to manufacture
fuel ethanol and bio-diesel to substitute increasingly expensive
oil.
It also said that the recent price hikes offered rational
compensation to local farmers who have long been plagued by the
rising production costs and relatively low yields from cultivation
since 1990s.
(Xinhua News Agency July 12, 2007)
