Economy

China's govt promises crackdown on farm produce profiteers

(Xinhua)
Updated: 2010-05-28 10:39

BEIJING: China's State Council, the Cabinet, has pledged to crack down on farm produce profiteers and strengthen management of local government fund-raising units.

Related readings:  China's farm produce prices up 1%  China to curb farm produce speculation  Summer harvest becomes focus amid inflation expectation  Food safety reforms proposed

China's grain output has risen six years in a row, but a run of natural disasters since last winter has dented output, said a statement released Thursday after the Cabinet's executive meeting chaired by Premier Wen Jiabao was held Wednesday.

Some speculators have hoarded certain products, pushing up prices, so effective measures had to be taken to crack down on the speculation, said the statement.

Prices have soared remarkably for garlic, mung bean, black soy bean and other nonstaple food grains.

Statistics from the National Bureau of Statistics showed mung bean was priced at nine yuan ($1.32) a kilogram in October in 2009, but soared to 20 yuan in May.

The Cabinet also vowed to tighten monitoring of fund-raising units set up by the local governments.

Local government fund-raising vehicles had contributed greatly to economic and social development, but problems such as "excessively rapid expansion" and sub-standard operations had also arisen, said the statement.