By Zhao Haiyong　

Date: 2005/03/07

Abstract: 　　

In 2004, domestic food grain supply showed a favorable turn, which stopped a 5-year dip in output. Food grain in store increased compared with beginning of the year, and the prices first rose, remained at a high level and then fell in a steady manner. In 2005, food grain supply will continue to grow and the gap between supply and demand is expected to shrink further. However a balance is hard to be reached and coupled with tight transportation capacity and high cost, the price will fluctuate at a high level. In a mid-and-long term, what needs to be done is to improve current policies, and to establish a long-term security mechanism for increasing food supply and income of the farmers.