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China's grain output is expected to rise by 5 percent this year, official media said, citing a higher forecast than Beijing had previously given.

The grain harvest this year is estimated to hit 494 million tonnes, the China Securities Journal reported on Monday, citing Lu Jingo, the director of the State Grain Administration's macro-management dept responsible for controlling state reserves and imports.

Domestic supply would still lag consumption by 15 million to 20 million tonnes, he said implying a higher demand estimate than that given by officials this summer.

Other officials had forecast that the 2005 harvest would rise to 475 million to 480 million tonnes, up from 469 million tonnes in 2004 on more widespread planting.

The summer grain harvest rose to 101.25 million tonnes, up 5.1 million tonnes from the year before, Lu said, speaking at a grain seminar. Autumn grain, including corn and rice, for which the harvest was just concluding, were more widely planted this year than last, Lu said.

China's grain output fell to a decade low in 2003, prompting the government to offer subsidies to grain farmers to secure supplies.

Copyright Reuters, 2005


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