Chinese grain output up 2.8% in 2006

It is the first time the country’s annual grain output
has increased three years in a row since 1985. Grain output rose 9% year-on-year
to 469.47 million tons in 2004 and grew 3.1% to 484.02 million tons in 2005. But
the supply of domestic grain still falls short of the country’s demand, said
analysts.

Shortage in 2010
China faces the possibility of a 4.8
million ton grain shortage in 2010, almost 9% of the country’s grain
consumption, according to a Chinese newspaper. To boost the development of grain
production, the Chinese government said at the beginning of this year that it
would continue with its policy to set minimum prices for grain purchase by the
China Grain Reserves Corporation.
As an executor of China’s macro-control
policy in the grain sector, the company undertakes the majority of tasks
involving grain purchasing, corn exports and imported grain reserves in order to
keep the grain market stable.

Increase in grain acreage
China had 105.38 million
hectares of land for grain crops last year, an increase of 1.1 million hectares
over the previous year. But the country’s arable land had shrunk from 131
million hectares in 1996 to 123 million hectares in 2005.

To subscribe
to the free AllAboutFeed newsletter click
here.