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China set to battle price hikes

0 CommentsPrint E-mail Xinhua, November 20, 2010
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Chinese ministries and local governments have coordinated efforts to combat price hikes by increasing grain supplies, clamping down on speculation and offering subsidies, as the central government has growing concerns about rising inflation.

In a move to head off price hikes, the State Administration of Grain will increase sales of grain supplies to meet the public's needs and stabilize market prices, the agency said in a statement posted on its website Friday.

Additionally, it will sell a set amount of cooking vegetable oil and soybeans from government reserves beginning next week, in addition to the weekly sales of wheat, rice and corn that have already begun, the statement said.

The authority will also send groups of staff to major grain production regions to inspect and guide purchases of autumn grain and regulate business practices, it added.

The statement said the move was designed to protect farmers' interests and maintain moderate prices in the grain market.

Further, the Ministry of Agriculture announced Friday that it will work to add 8 million mu (0.53 million hectares) of planting areas for vegetables and 2 million mu for potatoes to stabilize agricultural production and increase vegetable supplies during the winter.

Also, Zhou Bohua, head of the State Administration of Industry and Commerce, said the administration will "seriously" work to prevent the hoarding of agricultural products, forcing up prices and other speculative practices.

These measures echoed the central government's call to tame price rises.

China's State Council, or the Cabinet, on Wednesday announced price control guidelines to reassure consumers facing rising inflation.

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