China will work to enforce macroeconomic controls
in grain production, Cao Yushu, deputy secretary-general of the
National Development and Reform Commission, said in Beijing on
Monday.
While addressing an economic forum, Cao said that
despite an increase in grain production in 2004, there are many
latent problems in the sector.
It is crucial to keep grain prices at a reasonable
levels whilst increasing output this year, Cao said, since they
directly affect farmers' income.
Grain output last year surpassed the target of 455
billion kilograms and set a new record, but the previous year's
output had been the lowest since 1992.
Cao said that, with a growth rate of about 25
percent, investment in fixed assets remains excessive. Adjustments
are needed, since an irrational investment structure leads to many
problems such as oversupply.
(Xinhua News Agency January 18, 2005)