Agricultural Trade Deficit Hits US$3.66 Billion

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May 9 – China’s Ministry of Agriculture reported that first quarter trade of agricultural products incurred a deficit of US$3.66 billion in contrast to last year’s surplus of US$460 million for the same period. No explanation was provided by the ministry although sources speculate it could stem from a decrease in grain exports and increasing pork and oilseed imports.

For the first three months of the year, exports reached US$9.35 billion, an increase 9.6 percent year compared to the previous year while imports jumped by 61 percent to US$13.01 billion.

China exported 1.04 million tons of grain for the first quarter, a decrease of 72.8 percent. On the other hand, pork imports almost quadrupled and oilseed imports increased by 36.8 percent from last year.

The government has been making efforts to maintain agricultural production and food supplies, the latest being the tightening control of grain and fertilizer exports, increasing imports of edible oil and meat, and expanding storage of farm products.

The rising prices of basic commodities such as meat, eggs and vegetables has led to a first-quarter inflation of 8 percent.