Premier Wen Jiabao Tuesday called for a greater effort to
improve the efficiency of major grain production bases in the
country and to guarantee food security.
Governments at all levels need to continuously promote
agricultural reform and rural economic structural adjustment, Wen
said at a State Council working conference on agriculture and grain
in Beijing.
Thanks to bumper harvests over the past few years, China has
abundant reserves of grain.
Although grain production has reduced in the past two or three
years, the country has maintained abundant grain reserves and a
stable food market.
However, food security is always a big issue especially as
people's level of consumption is improving and the population is
increasing, Wen said.
More subsidies will be earmarked to help ease lives of farmers
in the major grain production areas and encourage grain production,
Wen said.
Local governments should take every measure to increase farmer's
incomes, including accelerating the rural tax reform process and
strengthening local infrastructure construction, he said.
An expected tight supply in the grain market will continue to
push up grain prices moderately over the next few years, but no
large price fluctuations are expected, agricultural officials and
researchers said.
Driven up by the grain price increase, the first time in six
years, the prices for flour, edible oil, meat, eggs and fodder have
all seen a rise since October 1 in key grain-consuming areas,
according to market data.
Due to serious spring droughts and autumn floods as well as
decreasing crop-growing acreage, the total grain output of this
year is estimated to see a drop for the fifth consecutive year.
Official statistics suggest that there has been an annual
shortfall of about 25-35 million tons of grain since 2000.
(China Daily October 29, 2003)