By Zhao Huaiyong & Qi Yunlan　

Date: 2004/05/18

Abstract:　　

Domestic grain price shot up in the first quarter. It is predicted to rise continuously in the second quarter with variations among different items, and will be kept stable at a high level in the year. At present, the rise of grain price is of rehabilitation in nature and is beneficial for farmers to increase their income and to give them incentives to grow grain crops; though the impact on daily life of the majority of urban residents is very little, we should show concern to the low-income groups. There is a great potential for grain production, and domestic stock of grain is sufficient to maintain food security. Control of grain market should rely on economic approaches with as little government interventions as possible to avoid sharp fluctuations in grain prices.