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Minister: Earthquake won't affect food prices or supply

(Agencies)
Updated: 2008-05-17 19:30

Huge swathes of farmland were destroyed by the earthquake in Southwest China's Sichuan Province, but the losses should not cause food shortages or big price hikes nationally, a senior official said Saturday.

Related readings: Food prices down for fifth straight week State grain reserves reported safe after quake China moves to guarantee drinking water in quake areas Quake region imposes temporary price controls

Wei Chao'an, China's vice minister for agriculture, said the earthquake destroyed more than 75,000 acres (30,000 hectares) of farmland in the worst hit Sichuan Province.

"This disaster led to serious losses in agricultural production in the affected areas, but the situation of agricultural production across the whole country remains good," Wei told a news conference. "Prices for agricultural goods, generally speaking, will remain stable. We have full confidence in this."

The worst hit province of Sichuan is an important growing region for rice, wheat, corn and other crops, producing six percent of China's grain.

Wei said there was enough food to supply the market and affected areas. Authorities have arranged special shipments of fuel, grain and edible oil to prevent shortages.

Consumer prices have jumped across China since mid-2007, driven by rises in food costs that hit 22.1 percent in April. The government has been trying to cool hikes for pork, grain and other items by increasing supplies and has imposed price controls on some basic goods.

China's economic planning agency set temporary price caps on basic goods and transport in quake-hit areas to prevent price gouging and hoarding.

The National Development and Reform Commission said Thursday it will control prices for food, drinking water and transport in central Sichuan and Gansu provinces because of rising prices there.