A large inventory will not be the new normal for China's grain sector, even though combined stocks have remained at historic highs, a senior official said as authorities prepared to encourage more private enterprise participation in the annual grain purchase arrangement.

Ren Zhengxiao, head of the State Administration of Grain, said at a news conference on Tuesday that there are no signs of consistency or stability in the country's large grain inventory, which could be reduced promptly if there were to be a sudden decrease in production or resurgence in economic growth.

With large stocks of grain and a shortage of storage facilities, the administration plans to encourage more private enterprises to take part in the summer and autumn grain purchase arrangement.