Beijing, CN (Reuters) — China will strengthen price controls on iron ore, copper, corn, and other major commodities in its 14th five-year plan for 2021 to 2025 to address abnormal fluctuations in prices, the state planner said May 25.
The country will also step up monitoring and analysis of commodity prices such as crude oil, natural gas, and soybeans, the National Development and Reform Commission (NDRC) said in a statement.
“(Local governments) should study and judge the import impact in depth, promptly make suggestions ... (on matters) such as reserves, import and export, fiscal and taxation, and financial adjustment measures,” the statement said.
The NDRC also said authorities would “reasonably adjust cotton target price levels” and stick to the country’s 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 prioritizes guaranteeing food security for its population of 1.4 billion.
The NDRC said it will build a solid grain supply and stabilize 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.
Premier Li Keqiang also said on May 24 that the government will strive to prevent rising commodity prices being passed on to consumers.
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