China’s grain prices to continue to rise
As China’s demand for grain continues to surpass domestic supplies, it is forecast that grain prices will persist in its upward trend in 2008, according to sources.
Chen Xiwen, deputy director of the Central Leading Group on Financial and Economic Affairs, recently revealed that the cost of agricultural sectors will continue to grow, driven by rising oil prices.
Prior to Chen’s forecast, Minister of China’s Ministry of Agriculture, Sun Zhengcai, said that the country can expect a fourth consecutive rich food harvest, with an estimated output of 500 million tons.
Meanwhile, the National Development and Reform Commission (NDRC) indicated that global grain prices carried on the uprising trend in September this year, along with rice prices surging 8.9%, and wheat and corn prices rising by 10.2% and 16.1% respectively, over the corresponding period a year ago.
Zhu Zhixin, NDRC Vice-Minister, added that China’s consumer price index eased slightly to 6.2% in September this year, following the 11 years record high of 6.5% in August.
Analysts from several organizations forecast that mainland’s price would continue to increase, due to China’s remarkable economic growth.
Tags: corn, food, grain, wheat