Can China Keep Agricultural Speculating In Check?

China

China is looking to put in place controls to keep agricultural speculation from increasing prices and inflation.

The government may also crack down on hoarding, offer food subsidies and hold local mayors responsible for ensuring vegetable supplies and controlling prices, the report said. In May, the government said hoarders will be fined by up to five times the value of the commodities held, the paper said.

Prices on agricultural commodities have been rising and the Chinese Government is acting quickly to stop actions that may cause economic disaster.

The Ministry of Commerce said today it will work with other government agencies to curb inflation. The supply of most goods is sufficient although a few products, including diesel, are in short supply, the ministry said in a statement ahead of a news conference in Beijing. The government is selling pork and sugar from reserves to ensure supply, the ministry said.