China is still facing a grain deficit of 37.5 million tons this year despite a bumper summer harvest and a possible rise in the rice yield, said Chen Xiwen, deputy director of the Office of Central Financial Work Leading Group.

Speaking on Saturday at the opening of the China Food Security Research Center, Chen said that the nation is sure to end its consecutive decline in grain yields for the year.

His prediction is based on a wheat yield this summer that has reached 101 million tons, a 4.8 percent year-on-year increase. The rice harvest is also expected to swell as planted acreage has been expanded by 533,000 hectares compared with last year.

"We can meet the target of producing 455 million tons of grain this year but we have no reason to feel relaxed. A deficit remains," said Chen.

China's production of wheat, corn, rice and other food grains dipped from a record high of 512 million tons in 1998 to 431 million tons last year.

After consulting with economists, other experts and high-ranking officials, Premier Wen Jiabao placed developing agriculture at the top of his list of ten priorities for the cabinet in the second half of this year.

Wen reiterated plans to strengthen grain output by urging local governments to subsidize producers.

At the beginning of this year, the government earmarked a record 150 billion yuan (US$18 billion) to encourage farmers to increase grain production, to improve rural infrastructure and to ensure the country's food security this year.

To drive home a sense of urgency, tough measures were implemented to check the disorderly and unauthorized acquisition of farmland, said Lin Yueqin, a researcher with the Chinese Academy of Social Sciences.

Farmland totaled 123.4 million hectares as of the end of last year, down 6.7 million hectares from 1996, according to the Ministry of Land and Resources.

Lin said the government should continue to implement policies that make growing grain as attractive as possible for farmers.

He said major agriculture policies include lowering agriculture taxes, giving subsidies directly to grain growers and setting minimum purchase prices for staple grain products.

The newly opened China Food Security Research Center, located at China Agricultural University in Beijing, will focus on strategies and policies for national food security.

(China Daily July 19, 2004)