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China denies rumors of salt shortages, price hikes

(Xinhua)
Updated: 2009-06-25 16:11

Chinese officials and salt producers have denied rumors of salt price hikes, which led to panic buying in parts of the country.

A notice released Wednesday on the website of the China National Salt Industry Corp (CNSIC), a State-owned firm, said that local governments had been told to ensure the production and distribution of salt and keep close watch on unauthorized price hikes.

The notice was issued Tuesday by the National Development Reform Commission, the national economic planning agency.

Prices of some necessities like salt are controlled by the government and retailers need authorization to raise prices.

Mao Qingguo, general manager of CNSIC, told China Central Television Tuesday that China had more than enough salt to meet demand, so price hikes were not likely.

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Panic buying has been reported in Fujian and Zhejiang provinces, with retailers allegedly hiking prices several times and supplies selling out. The rumors of shortages apparently arose when a salt company in Zhejiang Province closed for two days.

China's salt output was about 68 million tons last year, up 7 percent from 2007, according to the Ministry of Industry and Information Technology.