Plans ensure adequate grain supply
By Xie Chuanjiao (China Daily)Updated: 2006-12-15 08:53
But if prices go up too rapidly, they will affect the livelihood of many
low-income people, and social stability, it said.
Generally welcoming
the policies listed in the circular, economists and food market specialists
called for their effective implementation.
Wang Jinmin, a researcher
with the Institute of Agricultural Economics and Development of the Chinese Academy of
Agricultural Sciences, told China Daily that if the authorities can fulfil all
the measures, China will be effective in stopping the spiralling grain prices.
"We must make sure that no businesses sacrifice the public interests for
their own profits," he said.
According to Wang Huijiong, vice-president
of the Academic Committee of Development Research Centre of the State Council,
under the market economy, it is tough for the government to balance the
benefits of both producers and consumers.
When comparing urban supplies
with the interests of "the much bigger rural population," he said, letting the
price increase within a reasonable band" can actually help China solve its rural
problems.
Both experts said prices had also been rising rapidly for
farmers' procurement of raw materials - such as pesticides and
fertilizers.
Wang Jinmin noted that although the release of government
grain stocks would help ease the situation, it was only a short-term solution.
Future grain prices in China could be influenced by other factors on the
international market.
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