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Analysts doubt China self-sufficiency in wheat.
(From Lloyds List)
Byline: Rising Chinese wheat production unlikely to affect import levels for some years yet, writes Namrata Nadkarni
CHINA appears to be making progress in it's bid to reduce it's grain imports for 2005-06. However, shipowners have nothing to worry about, according to industry analysts.
As part of the country's plan to increase domestic wheat production and replenish it's diminished grain stocks, the Chinese government has announced plans to increase the area under wheat by 666,600 hectares.
The government predicts that the addition to the wheat acreage will increase total wheat production in China by a minimum of 3.5m tonnes. Total grain harvested this summer is expected to touch the 455m tonne mark.
Should weather conditions be favourable, the country might even see a bumper yield. This would be particularly beneficial to the government's plan to be largely self sufficient by 2007.
A leading dry bulk analyst said: 'We have heard that that the government is making a serious effort to encourage agriculture and raise domestic production. Over the years, we have repeatedly heard of the Chinese government's plans for a completely self sufficient country, but I think that they now understand that that is impossible.
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