China will spare no effort in achieving an eighth consecutive grain output increase this year, the Cabinet said on Wednesday. "Guaranteeing a (grain) supply has a very significant meaning in managing inflation expectations, stabilising the general consumer prices as well as realising a stable and relatively fast economic growth and harmonious society," said the State Council in a statement published on the government web site.
China faces a tough challenge in grain production due to the drought in northern wheat areas, rising production costs and farmers' unwillingness to grow grain amid unfavourable profits, the statement said. The country aims to expand its planting areas in rice, especially the early long-grain nonglutinous rice, and corn, and ensure that grain areas will be stabilised at the same level as last year, it said.
Other measures will be taken, such as building up more infrastructure construction, adding subsidies and a bonus of at least 9.6 billion yuan ($1.5 billion) as well as promoting new technologies, according to the statement. Beijing is under increasing pressure to rein in its fast rising inflation this year, which rose 4.9 percent in February, topping expectations and looking set to climb further in coming months.
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