Special Report on China wheat Market Proposal

[bharatbook]

Research Background: Since the 16th CPC National Congress, issues concerning agriculture, countryside and farmers have become the focus of economic work. Food production has become a priority to ensure food security. Top leaders of the Party and State have paid great attention to wheat production and that is why China's wheat production has reaped good harvests for four years in a row. The 17th CPC National Congress once again highlighted three rural issues and food security issues. ( http://www.bharatbook.com/detail.asp...-Proposal.html )

Nevertheless, the second half of 2007 saw the rapid dollar depreciation. International agencies predicted strained supply of agricultural products, leading to the global surge in the prices of agricultural products, particularly the international price of wheat. The domestic price of wheat also tumbled. Wheat and flour witnessed a sharp short-term rise in their prices. Wheat processing industry experienced a tremendous impact, while domestic economy witnessed structural inflation.

To prevent the overall inflation, on December 7th, 2007, the new central leadership pointed out, at the central economic work conference, the need to implement tight monetary policies to control macro-demands. We must focus our efforts on agricultural production, and increase the availability of food. At the same time, it was pointed out that we should vigorously develop modern industrial system, accelerate the formation of new edges for competition on the basis of scientific and technological progress and innovation, contain the excessive growth of sectors with high energy consumption and high emissions, eliminate backward production capacities, promote the orderly flow of factors of production, guide the rational distribution of industry and improve coordination of regional development.

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