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- China to strengthen commodity price controls in five-year plan
China to strengthen commodity price controls in five-year plan
Reuters reports that the National Development and Reform Commission (NDRC) said that China will strengthen price controls on iron ore, copper, corn and other commodities in its 14th five-year plan for 2021 to 2025 to address abnormal fluctuations in prices.
China will improve monitoring and forecasting systems for major commodities and strengthen price controls for important goods such as grain, meat, eggs and vegetables, the NDRC said.
It will also stick to the minimum purchase price policy framework for rice and wheat, it said. The government buys these grains from farmers at a minimum price when the market drops below that level.
The move comes as Beijing prioritises guaranteeing food security for its population of 1.4 billion.
The NDRC said it will build a solid grain supply and stabilise prices.
Commodities prices in the world's second biggest economy have seen big swings this year driven by post-pandemic demand recovery, global liquidity easing and speculative trading.
Beijing's recent moves come after soaring metals prices contributed to a spike in factory gate prices and slower growth in industrial output in April.
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