| NBS (National Bureau of Statistics) ：Three Factors Contributed to Grain Price Rise |
| Friday,February 02,2007 Posted: 09:41 BJT(0141 GMT) MOFCOM |
Despite three straight years of increase in China’s grain production output during 2006, grain price still went up dramatically in several regions. During the press conference of the State Council Information Office, NBS Director General Xie Fuzhan indicated that shortages in domestic grain supplies, unbalanced breed structure and rising global price have all contributed to soaring grain price in China. According to the latest statistic released by NBS, In2006, China’s grain price rose by 2.7%, which was 1.3 percentage points higher over the previous year 2005. In November 2006, China’s grain price went up by 4.7%. Xie Fuzhan indicated that although China’s grain yield output realized 3 straight years of increase, it was based on the low yield from the year 2003 when china’s grain supply and demand was just around a balanced status. NBS statistic revealed that in 2006, China’s grain production output exceeded 490 billion kilograms, which was a 3.1% increase over the 484 billion produced in the year of 2005 and a 9% increase over the year 2004 with 469.5 billion kilograms output. Xie Fuzhan stated that although China’s overall grain yield output was rising, some products still faced problems with unbalanced supply and demand relationship, plus an unstable produce circulation and increased unit price have all affected other products price, which pushed up China’s grain price. Xie Fuzhan said that currently the global market had an increasing influence on China’s grain price. In 2006, the world grain production volume was reduced by 1.6%; grain and wheat yield output dropped by 2.1% and 5.2% respectively, while the world’s food demand increased by 1%. Changes of food supply and demand relationship in the global market resulted in soaring futures pricing for wheat and corn in the CBOT (Chicago Board of Trade) market. In November 2006, wheat futures price increase by 30% while corn and paddy futures price went up by 52% and 16% respectively, which resulted in an increase of China’s imported grain price. Since November 25, the government has allowed increases in the supply of grain by releasing some of its national reserve to offset price jumps. Efficient measures should be adopted and implemented to maintain the grain price at a stable level, which are both beneficial to increasing farmer’s income and ensuring customer’s profit. |
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