Chinese Premier Wen Jiabao assured the public Saturday that the
government would surely be able to ensure supply and stabilize
prices as the nation has achieved steady and fast economic growth
for several years with good harvests of grain crops and rapid
industrial growth.
Wen was addressing the public concern over price hikes after the
country's consumer price index hit a 33-month-high of 4.4 percent
in June. Several industries including catering and oil have started
to raise prices and trigger public complaints.
To get first-hand information about the markets, Wen came to the
Xinfadi farm produce wholesale market, the largest of its kind in
Beijing, in the morning.
Pork vender Qian Guangping complained to Wen that rising pork
prices had dented demand and cut his sales from the previous 600
kilograms per day to 500 kilograms. "I earned much less now. When
do you think the price will fall?" he asked.
"As pig breeding has a production cycle, it will take some
time," Wen said, assuring him that the government has taken a
package of policies.
"The key is to stimulate the enthusiasm of the farmers. So long
as the policies are right, pork supply will rally and the price
will fall," he said.
Guo Shuping, who happened to be there to buy pork, said to Wen,
"The price is a bit high. Lean pork costs 11.5 yuan per jin (half
kilogram). Even the butt costs 9.8 yuan."
In 10 AM, Wen came to the Wanfa Hengshun Farm Produce Marketin
Xicheng District which is responsible for the supply of more than
40,000 people in Sanlihe area.
Premier Wen came to Wu Guifang, who had shopped eggs, and picked
up one egg from her shopping bag and examine it, asking how she
thought of the current prices. The woman said some of vegetables
have got expensive, but the price hikes were not huge.
Wen nodded, and urged local market management to see to it that
each deal is done in an open, fair and transparent manner. No one
is allowed to hoard supply and drive up prices.
He said current price hikes were mainly led by farm produce and
non-staple foodstuff such as grain crops and pork. But there are
indeed a few market dealers seeking price alliances to rig the
market and damage the interests of the public.
Wen said that agricultural subsidies on seeds, farming machinery
and other supplies must be handed directly to farmers. He
encouraged flood-stricken areas to restore farming as early as
possible to secure autumn grain crop production, which normally
accounts for three quarters of the country's annual grain
output.
Policies for supporting pork production must be seriously
implemented, he said.
The Premier has required local governments at various levels to
have a clear idea of production, procurement, distribution and
stockpile of daily necessities and make proper allocation when
necessary to secure market supply. "The supply line for daily
necessities should not be disrupted," he said.
Wen required market watchdogs at various levels to immediately
stage price overhaul, severely punish those who fabricate or spread
false price hikes information, and hoard supplies to drive up
prices.
He reiterated that low-income households and students from
poverty-stricken families must be subsidized in time to make sure
their living standards won't drop amid price hikes.
(Xinhua News Agency August 5, 2007)
