Premier Wen Jiabao reassured the public on Saturday that the
government will ensure supply and stabilize prices as the nation
has achieved steady and fast economic growth for several years with
good harvests of grain crops and rapid industrial growth.
Wen was addressing public concerns over price hikes after the
country's consumer price index hit a 33-month-high of 4.4 percent
in June. Several industries including catering and oil have started
to raise prices, which have triggered complaints from the
public.
To get firsthand information about the situation, Wen visited
the Xinfadi farm produce wholesale market, the largest of its kind
in Beijing, on Saturday morning.
Pork vender Qian Guangping complained to Wen that rising prices
had dented demand and cut his sales from 600 kg per day to 500
kg.
"I earn much less now. When do you think the price will fall?"
he asked.
"As pig breeding has a production cycle, it will take some
time," Wen said, assuring him that the government has introduced a
package of policies.
"The key is to stimulate the enthusiasm of the farmers. So long
as the policies are right, pork supply will rally and the price
will fall," he said.
Guo Shuping, who was shopping for pork, said to Wen: "The price
is a bit high. Lean pork costs 11.5 yuan per jin (half a kilogram).
Even the butt costs 9.8 yuan."
At 10 am, Wen went to the Wanfa Hengshun farm produce market in
Xicheng district, which helps supply food to more than 40,000
people in the Sanlihe area.
As Wen spoke to Wu Guifang, he took an egg from her shopping bag
and asked what she thought of the current prices. Wu said some
vegetables had become expensive, but the price hikes were not
huge.
Wen nodded and urged the market's management to ensure all deals
are done in an open, fair and transparent manner. No one is allowed
to hoard stocks to drive up prices, he said.
He said the current price hikes had been mainly led by farm
produce and non-staple foodstuffs such as grain crops and pork. But
there were a few market dealers seeking price alliances to rig the
market and damage the interests of the public.
Wen said agricultural subsidies on seed, farming machinery and
other supplies must be handed directly to farmers. He encouraged
flood-stricken areas to restore farming as early as possible to
secure autumn grain crop production, which normally accounts for
three-quarters of the country's annual grain output.
Policies for supporting pork production must be seriously
implemented, he said.
Wen has ordered local governments at various levels to have a
clear idea of production, procurement and distribution, and
stockpile daily necessities and ensure their proper allocation as
necessary to secure market supply.
"The supply line for daily necessities should not be disrupted,"
he said.
(China Daily Auguest 6, 2007)