China: New Crop Prices Likely To Rise On Costs

According to a note released by the Zhengzhou Grain Wholesale Market, prices of China's new crop rice are likely to rise in the short term due to high input costs, despite an ongoing harvest.

The state-owned grain trader said in an analysis published on its Web site that prices of new early crop rice are likely to start off at CNY1,700-CNY1,800 PMT in major producing areas, up from CNY1,540-CNY1,560 PMT during the same period last year.

China raised its minimum purchase prices of rice by CNY140 PMT to CNY1,540-CNY1,640 PMT in 2008. The government will buy rice at these prices during certain periods if prices in major producing areas fall below this minimum level.