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Supplies 'secure' from the impact of El Nino

By Zhong Nan (China Daily) Updated: 2015-06-24 08:17

"Thanks to China's continued investment in flood prevention infrastructure and water conservation since 1998, as well as sufficient inventory of staple grains including rice and corn, the country is quite capable of ensuring its grain security this year," said Ding Shengjun, a senior researcher at the Academy of the State Administration of Grain.

The United Nations Food and Agriculture Organization in May forecast that China's corn inventory could reach 102 million tons in 2015. The nation holds about 40 percent of global corn stocks.

China introduced floor prices for agricultural products in 2006 to protect farmers from price volatility. The government buys such products as wheat, corn and cotton for State reserves when market prices fall below the floor levels. To boost grain production, the central government allocated 143.4 billion yuan ($23.1 billion) this year to subsidize farmers, seeds and grain storage.

Ding said that the central and local governments should turn their attention next to the autumn crops, mainly rice, and take measures to tackle possible drought or dry weather that might affect corn production in North China's Inner Mongolia autonomous region as well as Liaoning and Hebei provinces.

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