May 07, 2008	Wednesday	Jamadi-ul-Awwal 1, 1429

SHANGHAI, May 6: China’s national economic planner said on Tuesday grain reserves were sufficient to ensure domestic supplies, adding the rise in global grain prices would only have a limited impact on the country.

The supply and demand of grain is basically in equilibrium with adequate state reserves and restrictions on grain exports in place, the National Development and Reform Commission said in a statement on its website.

“With sufficient domestic supplies and strict control on grain exports, the increase in international grain prices does not have a major impact on the domestic market,” a spokesperson.

The remarks came amid concerns over a spike in the nation’s inflation, mostly pushed up by rising food prices.

The spokesperson noted China produced over 501.5 million tons of grain in 2007, almost level with the nation’s annual consumption of 510 million tons.

China mainly relies on domestic supplies for staples like wheat, rice and corn, according to the spokesperson. China’s inflation reached 8.0pc in the first three months of the year. In February, it climbed to 8.7pc, the highest in 12 years, before easing to 8.3pc in March.—AFP