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Wheat Prices to Rebound

The national purchase price for wheat, China's major summer grain product, is rebounding thanks to government efforts and market adjustment.

The unit price per kilogram for wheat is rising 10 fen (1.2 US cents) to 1.3 yuan (16 cents) compared with 10 days ago, when the harvest began, the market price monitoring system showed.

Farmers' selling price for wheat should be guaranteed at a stable and reasonable level, government officials told a teleconference on Friday.

Seven central departments jointly addressed the measures to optimize wheat prices to bolster farmers' enthusiasm for planting in the coming years.

China reaped 89 billion kilograms of wheat this summer, up 2.5 billion kilograms over last year.

The current yield is still 10 billion kilograms short of meeting the nation's demand, said Li Shenglin, a National Development and Reform Commission official.

"China's wheat demand could be satisfied if grain reserves were taken into account," said An Dafeng, director at the China National Grain & Oils Information Center.

In the circumstances, the authorities have suggested that the China Grain Reserves Corporation purchase 6.5 billion kilograms of wheat, with a unit price at around 1.4 yuan (17 US cents). "The move shows the government's efforts in adjusting the low market price," An said.

(China Daily June 25, 2005)

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