¡¡¡¡BEIJING, May 27 (Xinhua) -- For quake-shocked Chinese, perhaps no news is
more inspiring than an anticipated good summer grain harvest.
¡¡¡¡PRODUCTION NOT AFFECTED
¡¡¡¡"If no severe disastrous weather conditions develop, the unit production of
the nation's summer grain harvest will hit a record high with the total output
rising for a fifth consecutive year," Agriculture Minister Sun Zhengcai has
said.
¡¡¡¡The expected good harvest will apparently add to China's grain reserves,
which, including this year's output, was considered "more than enough to feed
its people" by Zeng Liying, State Administration of Grain deputy director.
¡¡¡¡"China's grain supply will not be affected as most of the quake-stricken
areas are mountainous and unplantable," said Wan Fushi, an official with the
Crop Production Bureau of the Ministry of Agriculture, following the the
magnitude-8 quake that jolted southwestern Sichuan Province two weeks ago.
¡¡¡¡Amid a global grain supply shortage, the message could be more than a
relief for China's toughest after-quake reconstruction since 1976.
¡¡¡¡RISING FOOD PRICES
¡¡¡¡The Food and Agriculture Organization (FAO) of the United Nations said last
week that the food price index had remained stable since February, but the
average of the first four months was still 53 percent higher when compared to
the same period a year ago.
¡¡¡¡"Food is no longer the cheap commodity that it once was. Rising food prices
are bound to worsen the already unacceptable level of food deprivation suffered
by 854 million people," said FAO Assistant Director-General Hafez Ghanem.
¡¡¡¡The FAO's latest forecast for world cereal production in 2008 points to a
record output, now at nearly 2.192 billion tons, including milled rice, up 3.8
percent from 2007.
¡¡¡¡Commodity analysts, however, estimated that voracious global demand would
consume all the increase and prevent governments from replenishing cereal stocks
that are at their lowest level in three decades, according to a report by the
U.S. World watch Institute.
¡¡¡¡Driven by food price rises, China's CPI, the main inflation indicator, rose
8.5 percent year-on-year in April, compared with 8.3 percent in March and a
nearly 12-year high of 8.7 percent in February.
¡¡¡¡CHINA, A KEY REFERENCE
¡¡¡¡In China, summer grain usually takes up about 23 percent of the nation's
annual grain output. Last year, the nation produced more than 500 million tons
of grain.
¡¡¡¡The government has identified "protecting grain security" as a top priority
on its agenda, which has been marked by increasing allotments of
agriculture-supportive funds since 2004.
¡¡¡¡In the beginning of 2008, the State Council, the country's cabinet,
approved 95.063 billion yuan (13.6 billion U.S. dollars) in subsidies for
farmers. Those who grow wheat and oilseeds each received 1 billion yuan.
¡¡¡¡Last year, the government allocated a record 562.5 billion yuan to boost
agricultural production.
¡¡¡¡A State Administration of Grain official said earlier that China's ratio of
reserves to consumption was much higher than the 17-18 percent level regarded by
the FAO as a safe minimum for global stocks.
¡¡¡¡The nation has grain reserves of 150 to 200 million tons, a Ministry of
Agriculture official said.
¡¡¡¡But the minister admitted maintaining near self-sufficiency in grain would
become harder as people would demand more diversified and higher-quality grain
products.
¡¡¡¡"China's grain consumption is huge, so prices in the Chinese market are key
references for global grain price estimations. Prices fluctuations here would
lead to continued price volatility in the global market." said Cheng Guoqiang, a
researcher with the cabinet.