China says will import to refill agricultural stocks

China's Commerce Ministry said the country will increase imports of key agricultural commodities which are in tight supply in 2011 to replenish central government reserves. Minister Chen Deming told an internal meeting of the ministry that the government will increase reserves of sugar and meat among other daily-needed products, a statement on the ministry website said, without giving details.
China is facing tight supply of major farm products including corn, cotton and sugar, while large releases of these commodities this year had led to a very low level of central government reserves. "Given the growing pressure from price rises coupled with tight supplies of some farm products, securing supplies will play an important role in calming inflationary expectations and curbing speculative activities," the ministry statement said. China's futures prices of corn, sugar and cotton traded at record high levels in the last few months as investors speculated over tight domestic supplies.