Chinese govt starts pork purchase to stabilize prices

Updated: 2013-05-11 11:16


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BEIJING -- The Chinese government will soon launch a pork purchase plan to stabilize depressed prices and shore up farmers' confidence, the Ministry of Commerce announced on Friday.

The plan is the second of its kind this year, as prices of pork, a staple meat in China, have declined sharply since the end of February due to subdued market demand and oversupply.

Pork prices in April declined 6.5 percent compared to last year and 6.1 percent from the previous month, data from the ministry showed.

The government will watch the changes in pork production and prices closely, and take effective measures to help stabilize the market, the ministry said.

The volatility of the pork market has been a headache for the government, as soaring pork prices were a major cause for high inflation last year.

In an executive meeting of the State Council headed by Premier Li Keqiang on Wednesday, the cabinet underlined the importance of agriculture, pledging to increase pork reserves to prevent steep falls in prices.