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By Xin Zhiming (China Daily)
Updated: 2008-03-11 07:18

Adequate supply of edible oil can be guaranteed and local authorities should ensure market supply by releasing reserve oil "at the appropriate time", the country's grain regulators said yesterday.

Related readings:  Edible oil trade hits 8.6m tons in  Edible oil trade hits 8.6m tons in 2007  Edible oil consumption to hit 22.5m tons in 2008

"Currently, edible oil production and imports are in a normal state and market supply can be guaranteed," the National Development and Reform Commission and the State Grain Administration said in a statement.

Pushed up by rising international soybean and edible oil prices, domestic edible oil prices have seen strong growth momentum since last year. Experts believe the trend will continue in the coming months.

Last year, the supply of edible oil amounted to 23.8 million tons while consumption was 23 million tons, according to the statement.

International prices of soybean, a major source of making edible oil, had plummeted in response to the news that China may be releasing reserve edible oil to the market to anchor prices. Prices have increased 18 percent this year, driven by poor harvests worldwide and rising demand.

Local market regulators should closely monitor the market price trend of edible oil and severely punish those hoarding the commodity to profit from rising prices, the statement said.