Price of rice set to rise

   Date:2008/07/09     Source:

PRICES of rice on the Chinese mainland are to largely remain stable with a modest upward trend in coming months, Chinese experts believe.

Chen Yao, head of the Heilongjiang grain association, a major cereal growing area in northeastern China, said yesterday that factors behind further paddy price rises included government policies to support agricultural production and the mounting costs of paddy growing and processing.

Chen noted price rises on international rice markets and short supplies worldwide would increase farmers' and traders' resistance to selling, and that frequent natural disasters across the mainland would possibly trigger a rice dearth in some areas.

China was predicted to produce 185.7 billion kilograms of paddy this year, a growth of 210 million kilograms, or 0.11 percent, from 185.49 billion kilograms last year, according to Chen.

The slightness of the change would deprive paddy and rice prices of conditions to rise sharply, Chen said.

The Chinese government said earlier this year that the nation's grain reserves were at 150 million to 200 million metric tons, including 40-50 million tons of rice.

According to Zeng Liying, deputy head of the State Administration of Grain, the sufficient storage would help maintain the stability of domestic supply and prices.

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