China Raises Prices on Rice, Wheat to Boost Production
hina's government is raising the minimum price it will pay farmers for rice and wheat in a bid to encourage production and ease shortages blamed for a surge in inflation.
The announcement Friday by the country's economic planning agency adds to a string of measures aimed at cooling inflation. The consumer price index accelerated to 8.7 percent in February, hammering Chinese shoppers and raising the risk of unrest.
It was the second time this year the government has raised the minimum price paid for grain.
The government earlier froze prices of grain, cooking oil and other basic goods in an effort to cool inflation. But analysts have warned that keeping prices too low would discourage farmers from raising production.
hina's government is raising the minimum price it will pay farmers for rice and wheat in a bid to encourage production and ease shortages blamed for a surge in inflation.
