Most grain crops of China report price hikes in June

    (Xinhua)
    Updated: 2007-07-12 02:27

    The average purchase and distribution prices for rice, wheat and corn in China edged up in June from the previous month as a result of rising global obsession with the development of bio-energy, according to China's top economic planning agency.

    The national average purchase and distribution prices for rice, wheat and corns have both grown by 0.9 percent to 76.8 yuan and 79.7 yuan per 50 kilograms respectively, according to the latest figures from the National Development and Reform Commision.

    But the average purchase price for wheat dropped by 1.5 percent to 72.6 yuan per 50 kilograms because of the new wheat lately put to market.

    Soybeans were purchased by grain crops firms at 143.2 yuan per 50 kilograms on average, up 3.1 percent from May, and sold at 148.3 yuan, up 3.4 percent.

    In wholesale markets, the prices for rice, wheat, corn and soybeans have grown by 2 to 17.6 percent over the same period of last year.

    The commission attributed the price hikes to the rising world demand for corn and soybeans which have been used to manufacture fuel ethanol and bio-diesel to substitute increasingly expensive oil.

    It also said that the recent price hikes offered rational compensation to local farmers who have long been plagued by the rising production costs and relatively low yields from cultivation since 1990s.



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