News last update:6 Aug 2012

Drought and floods hit Chinese crops

The autumn grain crop harvest in China is projected to be 10% less than usual levels. This will further increases prices of raw materials and food products, a local Chinese newspaper reported.

Vice premier Hui Liangyu urged the country to do everything possible to maximise the autumn grain harvest, despite natural disasters that had affected production in some areas. Hui's comment came as high prices for food, such as pork, raised July inflation to 5.6%, the highest in 10 years.

The newspaper said drought had hit about 11 million hectares of arable land in China so far this year, 1.7 million hectares more than last year, while about 8 million hectares had been flooded. China's arable land totals about 100 million hectares. The autumn grains, including maize, rice and soybeans, are to be harvested in late September.

Earlier news reports stated that the total Chinese grain output is not affected by natural disasters.

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