Wheat Reserves Enough To Meet Domestic Demand-China's Foreign Ministry

China's Foreign Ministry sought to quell speculation that the country may step up wheat imports, saying the country's wheat reserves were enough to meet demand, even if there is a shortfall in domestic production.

Ma was responding to a question on whether China will need to import wheat if an ongoing drought hits winter wheat production. There have been bumper harvests in recent years and China's reserves are ample and sufficient, Foreign Ministry Spokesman Ma Zhaoxu said.

Ma's comments on grain imports are unusual as they concern an area usually dealt with by commerce and agriculture officials. The Foreign Ministry's response at a regular press briefing signals the issue is gaining national prominence, as record wheat prices complicate the government's fight against inflation.

Although the area hit by the drought in eight major producing provinces fell slightly after recent rains and snowfall, China's Ministry of Agriculture said over the weekend that the precipitation, which was less than five millimeters in most wheat producing areas, wasn't enough to relieve the drought.

As of Feb. 13, the drought had affected about 7.22 million hectares of winter wheat in Hebei, Shanxi, Jiangsu, Anhui, Shandong, Henan, Shaanxi and Gansu provinces, which together account for more than 80% of the country's output, the ministry said Sunday.

The affected area covered 39.6%of the total wheat area in these provinces. Global trading interests have been positioning to pursue any increase in Chinese import demand, which they expect to pick up following the drought that began in October.

The provinces need at least 50 millimeters of precipitation to effectively ease the drought, the ministry said, citing Yu Zhenwen, an academician with the Chinese Academy of Engineering.

(Source: http://www.indiainfoline.com/Markets/News/Commodities-Buzz-Wheat-Reserves-Enough-To-Meet-Domestic-Demand-Chinas-Foreign-Ministry/3560870544)