China set to balance grain supply and demand in 2007

In 2004, China will fulfill the target of 910 billion grams of grain production set at the beginning of the year and is expected to achieve balanced grain supply and demand in 2007, said Zhang Hongyu, an official from the Ministry of Agriculture, on Setpember 11 at China Corn Market Forum 2004.

The Ministry of Agriculture identified two goals of this year's grain production at the beginning of 2004 that 910 billion grams of grain would grow from the 1.55 billion mu of land. After years of decline, China's grain production had plunged to 861.3 billion grams which was reaped from no more than 1.5 billion mu of land.

Zhang confirmed that both of the two goals would be achieved.

He noted the strategies to realized these ambitions. First, basic farm land will be secured and upgrading of land with medium and low harvest be sped up. Secondly, areas with comparative advantage in grain production will make up a belt. Thirdly, get farmers more motivated to grow grain. And fourthly, grain market will be open further. The futures market will help farmers have market-oriented production plan and ward off risks of fluctuation of grain prices.

By People's Daily Online