Minister: Grain output will be kept above 500 million tons

Commodities

9 May 2008

China said it will keep grain output above 500 million metric tons in 2008, AFP reported, citing state media. In addition to announcing the output goal, Agricultural Minister Sun Zhengcai said the  country would control the development of biofuels, which have the potential to impact China's grain supplies. The announcement came as global rice prices rose to 19-year highs. China is the world's largest producer and consumer of rice, and rising food prices have been one of the main factors behind inflationary pressures in China. The government imposed taxes on grain exports earlier this year to ensure stable domestic food supplies.

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