China stocks up its grain reserves

The government would also increase the price floor for government grain purchases, according to Chen Xiwen, Director of the Office of the Central Rural Work Leading Group. "Agricultural product prices are decided by market supply and demand rather than the government. What the government could do is to set a minimum purchase price to prevent prices from falling excessively," he added.

Chen also said Beijing would consider increasing grain exports to better balance domestic and global demand and supply. "If there are demands in the international market, China will increase some grain exports at reasonable prices so as to ensure global grain security as well as promote a balance in domestic grain demand and supply," Chen said.