By Zhao Huaiyong　

Date: 2004/08/13

Abstract:

On the whole, grain price increases in the first half of 2004 remained strong. Thanks to good yields of summer crops, early rice and seasonal factors, grain prices have shown a downward trend since May. For the year as a whole, grain output will have a rehabilitation rise with a narrower gap in supply to demand. However, due to various reasons, grain prices in the latter half of the year will show small increases, basically of a rehabilitation type, which is in general beneficial. There is no need of excessive government interferences. In the future, policy emphasis should still be on promoting grain output and the key is to consolidate and improve various polices and measures already in effect, and to form a long-term mechanism of supporting agricultural production.