CHINA TO IMPORT MORE GRAIN IN 1987
China's grain imports will rise
in 1987 because of a serious drought and increasing demand, but
will be not be as large as in the past, Chinese officials and
Japanese traders told Reuters.
    They said foreign exchange constraints and national policy
would not allow a return to large-scale imports, which peaked
at 16.15 mln tonnes in 1982.
    An agricultural official of the Shanghai government put
maximum imports at about 10 mln tonnes this year, against 7.73
mln in 1986 and 5.97 mln in 1985.
    Officials said grain imports rose in 1986 because of a poor
harvest and rising domestic demand, but remained below exports,
which rose to 9.42 mln tonnes from 9.33 mln in 1985.
    "China is short of foreign exchange," the Shanghai official
said. "We cannot rely on imports, even at current low world
prices. Only if there is a major disaster will we become a
major importer."
    A Japanese trader in Peking said Chinese grain imports
would rise and exports fall this year because of the drought,
low world prices and rising domestic demand for human and
animal consumption.
    "At current prices, China loses yuan on every tonne of grain
it exports, though it earns foreign exchange which it badly
needs," the trader said.
    The People's Daily said last Saturday a serious drought is
affecting 13.3 mln hectares of arable land, which will reduce
the summer grain harvest from last year's level.
    The paper added that leaders in some areas were not paying
enough attention to agriculture, especially grain, making it
difficult to achieve the 1987 grain output target of 405 mln
tonnes against 391 mln in 1986.
    "All areas must spare no effort to raise the autumn harvest
area, especially of corn, sweet potatoes, paddy rice and
high-yield cash crops," it said.
    It added factory production might have to be reduced to
provide electricity for agriculture if it was needed to fight
the drought.
    Since January, the press has devoted much attention to
grain, stressing that growth in output is vital to China's
economic and political stability and that prices paid to
farmers are too low.
    Officials in east China have repeatedly said stable grain
production is a key state policy and outlined the measures
being taken in their areas to encourage output.
    The Shanghai official said that in one suburb, 10 pct of
the pre-tax profits of factories are used to subsidise
agriculture. He said rural industries in other suburbs also set
aside money for grain and pay the salaries of some of the
70,000 workers available to help farmers.
    Chu Jinfeng, an official of Fengbing county outside
Shanghai, said factory workers get 60 yuan a month and three
years unpaid leave to grow grain and can keep the profits.
    Pan Huashan, an official of the agricultural department of
Zhejiang Province, said rural industry also subsidises grain
output in his province.
    "In addition, we are setting up grain production bases,
raising the level of science and technology on the farms and
improving the supply of raw materials, roads and other
infrastructure," he said.
    The Shanghai official said rural residents who work in
industry or commerce usually keep their land to farm in their
spare time, or let other family members farm it. In some cases,
they lease the land to grain farmers.
    The China Daily said last month that grain output should
reach between 425 and 450 mln tonnes by 1990 and between 480
and 500 mln by 2000. It said growing grain should be made
profitable.
    "The advantages the state promises grain growers actually
yield tangible profits for them and are not siphoned off by
intermediate agencies because of bureaucracy or corruption.
Only this will boost enthusiasm," it said.
 REUTER
