China self-sufficient in commodities
There's rising concern about possible shortage of grain, oil, meat, eggs, milk, vegetables and fruits in China because of continuous rise in their prices globally owing to the impact of COVID-19 and geopolitical tensions.
Many countries have even imposed restrictions on the export of wheat and other grains, after grain prices increased significantly in the international market this year. However, such concerns are unfounded in China, where grain prices have seen a moderate rise. The country can produce 95 percent of the grain the population needs. Whatever grain China imports is not for plugging demand and supply gaps, but for ensuring variety.
China attaches great importance to grain production. The central government recently allocated 20 billion yuan ($3.14 billion) to provide a one-time subsidy to grain farmers. Since February, the Ministry of Agriculture and Rural Affairs has sent working groups to major provinces producing winter wheat to check the seedling situation, moisture content, disease and insect situation, and guide local governments to carry out spring field management as early as possible.
China's edible vegetable oil supply is also secured. In fact, since March 10, the prices of various vegetable oil products in China have begun dropping significantly. With the availability of domestic rapeseed from late May, edible oil prices could drop further.
There is also an ample supply of pork whose prices have fallen for 16 consecutive weeks. On monitoring data in over 500 county markets in China, the Ministry of Agriculture and Rural Affairs found that in the fourth week of March, the national average price per kilogram of pork was 22.38 yuan, down 1.2 percent month-on-month, and 49.2 percent year-on-year. China's egg market has also realized self-sufficiency. As the peak supply season for vegetables and fruits arrives, prices of vegetables and fruits are also expected to stabilize.
China attaches great importance to its food security. Preferential policies and measures targeting agriculture over the past years have helped China ensure sufficient capability to deal with possible external risks and challenges.
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