China's grain output will remain stable at around 500 million
tons this year if there are no major natural disasters, the State
Grain Administration (SGA) said on Saturday.
The ongoing snow, the worst in the country in five decades, has
rendered limited effects on grain production, Chen Xiwen, head of
the Office of the Central Leading Group on Rural Work, told the
media.
"The ratio of grain reserves to consumption in China is much
higher than the safe line recognized internationally," said the SGA
in a written reply to a Xinhua interview request, without
disclosing details.
The grain watchdog said the country produced 501.5 million tons
of grain in 2007, the fourth consecutive year of increase despite
months of severe drought. The year ended with a relatively high
level of grain reserves.
SGA figures show China consumed 500 million tons of grain in
2006. Grain consumption was expected to have grown steadily in
2007, but with a narrower gap between supply and demand, according
to the administration.
A long-lasting drought, the worst in a decade in the country,
caused losses of 37.36 billion kilograms of grain last year.
Snowstorms that started to hit southern China in mid January,
however, have taken a limited toll on grain output as most winter
grain crops were planted in the north. Fresh vegetables, however,
have suffered severe blows, Chen said.
Meanwhile, grain price increases in the second half of 2007 may
affect the price level in 2008, the SGA said.
China's consumer price index (CPI) rose 4.8 percent in 2007,
with the prices of grains, such as soybean, reaching a record
high.
The government also took a series of measures to rein in price
increases. These included injecting state grain reserves into the
market and promoting sales of grain purchased at minimum prices
from farmers.
(Xinhua News Agency February 3, 2008)
