Utilization of market mechanisms leads to high summer grain purchasing levels

Food processors nationwide have purchased more than 70 million metric tons of summer grain, representing a relatively high purchasing level in recent years, the National Food and Strategic Reserve Administration said on Wednesday.

This above-average achievement was a result of authorities actively utilizing market mechanisms and enhancing market monitoring, the administration said.

Efforts have also been made to enhance sales linkage, and coordinate reserve rotation, it said.

In a media release, the administration said, "The overall progress of grain procurement has proceeded smoothly."

The annual State-led food purchasing initiative is vital for ensuring a stable food supply and has been instrumental in implementing the minimum grain purchase price policy, safeguarding grain-growing revenue for farmers.

The administration said the State-owned China Grain Reserves Group has activated 403 grain collection points in major wheat-producing regions such as in Hebei, Henan and Shandong provinces. Procurement prices have all exceeded 2,500 yuan ($355) per ton, effectively stabilizing the food market.

The administration also expects purchasing this year around 200 million tons of autumn grain — which accounts for the bulk of the annual food output — on a par with the previous year.