China drafts measure to manage food prices

China’s Ministry of Commerce has drafted a document on the emergency management of staple foods to avert drastic price increases and guarantee supply, the Wall Street Journal reported. Under the plan, the government will attempt to ensure supply by placing limits on exports of staple foods and arranging imports if needed. It will also sell its own reserves on the market, served by a newly expanded supply capability provided by local governments and some key food producers. Food prices in the country increased 10.3% year-on-year in January due to a drought in key grain-growing regions coupled with strengthening demand. The National Development and Reform Commission said on Thursday it will implement a national price-inspection campaign in a bid to keep agricultural prices at reasonable levels and increase farm output.