Stranded residents are evacuated on shovel loaders in flood-hit Xinxiang City, central China's Henan Province, July 24, 2021. Photo: Xinhua

The impact of heavy rain and floods in Central China's Henan Province on the grain market in China is partial and short-term, Ministry of Agriculture and Rural Affairs said on Friday.

Although the operation of the grain market is affected by many factors including market dynamics and capital speculation, however the fundamentals of supply and demand remain at its core. The heavy rains and floods in Henan on the grain market will have a relatively limited impact on China's grain production and supply, Tang Ke,  an official representing the ministry stated.

Photo: Xinhua

China has recorded a bumper summer crop, with observers equally optimistic about the coming autumn harvest. Coupled with sufficient grain stock, the foundation for food supply and price stabilization is solid, Tang noted.

The heavy rain in Henan triggered concern over the grain supply, as Henan's grain output in 2020 was 68.26 million tons, ranking the second in China, accounting for more than one-tenth of the country's total output. 

The output of summer wheat, which accounts for most of the country's wheat production, rose 2 percent from 2020 levels to 134 million tons, the National Bureau of Statistics said earlier this month, showing that the food supply of the year will be secured.

Henan is the main production area of winter wheat and summer corn in China. Following severe floods which impacted part of the province, China's grain prices did not fluctuate significantly, with markets remaining stable, Tang noted.

Global Times