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Recommend "The Peoples Daily" - Drought worsens fears of inflation (Email)

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The Peoples Daily (PRC), May 31, 2011

http://english.peopledaily.com.cn/90001/90776/90882/7395635.html

A rare drought that has wreaked havoc in central and southern China is expected to send grain prices soaring as experts predict the worst disaster of its kind in 50 years could offset the government's efforts to curb inflation and threaten its annual CPI target of 4 percent.

Five provinces in the lower reaches of the Yangtze River – Hubei, Hunan, Jiangxi, Anhui and Jiangsu, a major grain-producing region – have suffered the most serious drought in decades.

The drought had affected 34.8 million people, over one million livestock, and 3.7 million hectares of farmland as of Friday, causing direct economic losses of 14.9 billion yuan ($2.3 billion), the Ministry of Civil Affairs said.

As farmers struggled to find new water sources for their crops, many fishing boats found themselves grounded as the river and lakes shrank, and residents in the region found the prices of vegetables, rice and aquatic products rising.


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