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News >Bizchina

Govt to introduce food price rules

2010-11-16 13:12

The Chinese government will introduce a series of adjustment measures to restrain rocketing food prices, the China Securities Journal reported Tuesday, citing sources close to authorities.

The National Development and Reform Commission, China's economic and social development policy formulator, is likely to release some strict rules to stabilize food prices, the report said.

Measures such as price fixing plans, food price control systems in cities, public subsidies, and harsher punishment for hoarding and market manipulation activities will be introduced soon.

Administrative intervention details will be included in the soon-to-be-released measures. When food prices see a continuous, excessive increase, the government will set a price ceiling to regulate the market, the report said.

The shopping basket program (a policy to guarantee vegetable supplies in cities) will be strengthened to make sure that vegetable self-sufficiency is high enough to prevent supply shortages. According to the new measures, if the rate of rising prices exceeds expectations, local governments will release subsidies to offset the hikes, the report said.

In addition, the price manipulation on cotton and corn will lead to more serious punishment, according to the report.

The prices of 18 staple vegetables rose 62.4 percent across the country during the first 10 days of November, compared to a year earlier, Xinhua News Agency reported Tuesday, citing a senior official at the Ministry of Commerce.

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