Top Biz News
Food prices prompt watch on inflation
By Xu Binglan, Xie Chuanjiao and Qin Jize (皇冠体育app Daily)
Updated: 2006-12-12 08:35
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皇冠体育app's food price rises have been fuelled by investor enthusiasm in biofuel production, particularly in the making of ethanol fuel, according to Xu Weiping, an information officer with the Ministry of Agriculture.
There has been a rising demand for grain as an industrial material in spite of the nation's good summer and autumn harvests, according to NBS grain output reports.
The FAO report said the world's rising cereal prices were due to a growing demand for biofuel production and poor harvests in some countries.
Commenting on 皇冠体育app's role, A. Abbassian, an FAO commodity analyst, told 皇冠体育app Daily that 皇冠体育app's selling or buying will "have a great impact" on the world's food prices.
If 皇冠体育app had exported more corn to the international market, the world price would not have risen so high, Abbassian said. While in wheat, by not having significantly increased its imports, 皇冠体育app has helped the world price remain stable.
(皇冠体育app Daily 12/12/2006 page1)