Make farming profitable

In the face of surging food prices worldwide, the central government's assurance of a stable supply based on ample stocks is crucial to keeping domestic grain prices in check for the moment.

Premier Wen Jiabao had said earlier that China has abundant grain reserves amounting to 150 million to 200 million tons. With such a huge stock that equals 30 to 40 percent of the country's annual grain production, it makes little sense to doubt the Chinese people's capability to feed themselves.

However, to address growing concerns over long-term grain prices, the authorities should encourage farmers to increase production with more fiscal incentives.