China is continuing to combat winter drought that has parched the country's major grain production regions in the north. Reservoirs along the Yellow River have increased water supplies to meet irrigation demands.
Two major reservoirs are now discharging nine-hundred cubic meters of water per second, up from seven-hundred. Four affected provinces along the river have received more than 280-million cubic meters of water that has covered 310-thousand hectares of wheat crops.
A staff member from one of the major grain trading centers in Henan Province says grain prices have generally been rising at levels seen in previous years because the central government has released more wheat into the market.
Wu Jiang, Manager of Zhengzhou NationaL Grain Trade Center, said, With the government's macro-economic control measures, the minimum wheat prices are on a steady rise, and will not fluctuate. Almost all the grain has been sold at the minimum price set by the government, because the amount of grain on the market is able to cover nearly all the demands.
