By Zhao Huaiyong　

Date: 2004/11/19

Abstract:   

The first three quarters of 2004 saw a fluctuation of grain prices from high to low and back again. Grain prices in the fourth quarter are expected to stabilize at a high level. Due to the impact of cyclical factors, grain prices will fluctuate to a certain extent, while the discrepancy between grain prices in different areas will become wider due to transportation factors. Policies for the next two years should continue to focus on encouraging peasants to grow grain and raising grain yields, and the key to the success of these policies lies in keeping grain prices stable. Taking a longer view, we should speed up the establishment of a national macro regulatory system and give market mechanism full play in adjusting grain prices.