Guangdong's provincial government will take interventionist
measures to stabilize the soaring price of grain, local officials
said at the weekend.
Five local government agencies, including the price bureau,
development and reform commission, and the grain administration on
Sunday jointly issued an emergency scheme to deal with abnormal
price fluctuations. It will come into effect tomorrow.
The scheme will be activated in the event that half of the
regions in the province record a cumulative 50 percent increase in
the grain price in a single week, and the situation lingers for no
less than 15 days.
It will also come into effect if half of the regions record a
cumulative 100 percent increase in a single week.
However, the emergency measure can only be initiated with
approval from the provincial government, an official from the
Guangdong price bureau told reporters after the release of the new
policy on Sunday.
Under the scheme, the government can set a maximum retail price
for grain, based on people's ability to pay, the historical price
record and the prices in neighboring regions.
Grain processing companies, wholesalers and retailers will be
given subsidies by the government if the maximum retail price does
not offset their costs.
Local governments in Guangdong have been advised to use their
grain reserves appropriately to ensure a steady market supply and
stabilize prices.
The intervention measures will be announced at press briefings
when the emergency scheme is activated, an official from the price
bureau said.
The bureau will also regularly publicize the grain price and
market information on supply and demand.
However, the scheme was by no means an indication the grain
price was set to rise again, bureau officials said.
Figures from the price monitoring center in Guangdong showed the
wholesale price of grain rose slightly in June, while the retail
price remained unchanged from May.
The center also forecast the grain price would go up slightly in
the third quarter, but the overall situation would remain
stable.
(China Daily July 31, 2007)