Expecting another year of grain yield shortfall, China will make efforts to fill the gap by enhancing the productivity of its farmland and increasing grain import, a financial official said Monday.

Chen Xiwen, deputy director of the Office of the Central Financial Work Leading Group, said at a press conference in Beijing that China's annual grain yield failed to meet its domestic demand since 2000 and the condition is expected to continue this year.

The storage in the country, however, is still "abundant" and so there should be no worry on the supply, Chen said.

The official said that China increased its grain import in 2004 to ease the pressure on the grain market.

The Chinese government set the goal of the country's grain production at 455 billion kilograms in 2004 and the domestic demand was expected to be 490 billion kilograms.

The actual yield, however, surpassed the goal and last year's shortfall was less than 35 billion kilograms, Chen said.

Increase of grain production was reported in China in 2004 after consecutive years' downturn.

Chen attributed last year's increase to favorable weather and a hike of grain prices, which stimulated farmers' enthusiasm in grain growing.

"The central government hopes the grain production in 2005 can maintain the momentum, and we will also try to offset the shortage by means of importation," Chen said.

China was a net grain exporter from 1997 to 2003, but the country imported four million tons of grain in 2004 and became a net importer.

The central government Sunday issued its first document for the year 2005, highlighting its policies on rural work and agriculture.