Adopt balanced approach

It seems farm produce is overtaking housing as the preferred investment choice in China these days. This is not to say food-price inflation is round the corner just yet, even if the nation's consumer price index is expected to show a rise by the targeted 3 percent before the year is out.

Policymakers, however, need to carefully track recent hikes in food prices. Even so, any harsh measure to curb the rise must be weighed against likely gains accruing to farmers from higher prices for their produce.

A month after the government took the toughest measures yet to cool the sizzling property mart, developers are beginning to shy away from investing in the sector.