What’s new: China’s commerce ministry has told local authorities to encourage households to keep certain stocks of daily necessities like meat and vegetables in the upcoming winter and spring in case of any emergency, according to a Monday notice (link in Chinese).
The notice has raised concerns among some residents about a potential lack of food.
In response to such concerns, sources close to the ministry said that people should not over-interpret the statement. The notice is a regular seasonal move aiming to ensure adequate supplies and stable prices of daily necessities, they told Caixin.
The background: Recent extreme weather in many growing regions has damaged crops and led to soaring vegetable prices, while pork prices have also been on the rise.
In the week of Oct. 18 to 24, the weekly average price of monitored vegetables reached 5.57 yuan (87 U.S. cents) per kilogram, marking the fifth straight weekly increase and a rise of 24% from five weeks earlier, according to data from the agriculture ministry. In the period, the average wholesale price of pork surged 13% from two weeks earlier.
Low temperatures and rainy weather in growing provinces including Shandong, Shanxi, Henan and Hebei have affected vegetable output in the autumn, according to a report released by investment bank China International Capital Corp. Ltd. (601995.SH) on Tuesday. Also, rising transport costs amid the Covid-19 pandemic have buoyed vegetable prices.
Related: China Targets Vegetable Hoarders After Cost of Spinach Surges
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Lin Jinbing (jinbinglin@caixin.com)
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