Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

China urges families to keep stocks of daily necessities ahead of winter

Published 11/02/2021, 03:50 AM
Updated 11/02/2021, 06:26 AM
© Reuters. FILE PHOTO: Two grandmothers with their granddaughter trade vegetables at a market on the outskirts of Shanghai, China June 3, 2021. REUTERS/Aly Song/File Photo

By Brenda Goh and Dominique Patton

SHANGHAI/BEIJING (Reuters) - The Chinese government has told families to keep daily necessities in stock in case of emergencies, after COVID-19 outbreaks and unusually heavy rains that caused a surge in vegetable prices raised concerns about supply shortages.

The commerce ministry directive late on Monday stirred some concern on domestic social media that it may have been triggered by heightened tensions with Taiwan, while some said people were rushing to stock up on rice, cooking oil and salt.

"As soon as this news came out, all the old people near me went crazy panic buying in the supermarket," wrote one user on China's Twitter-like Weibo (NASDAQ:WB).

Local media has also recently published lists of recommended goods to store at home including biscuits and instant noodles, vitamins, radios and flashlights.

The public response forced state media on Tuesday to try to soothe fears and clarify the ministry's statement.

The Economic Daily, a Communist Party-backed newspaper, told netizens not to have "too much of an overactive imagination" and that the directive's purpose was to make sure citizens were not caught off guard if there was a lockdown in their area.

The People's Daily said the ministry issues such notices every year, but had issued its instruction earlier this year because of natural disasters, the surge in vegetable prices and recent COVID-19 cases.

The ministry's statement late on Monday urged local authorities to do a good job in ensuring supply and stable prices, and to give early warnings of any supply problems.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

EXTREME WEATHER

The government typically makes extra efforts to boost fresh vegetable and pork supplies before China's most important holiday, Lunar New Year, which in 2022 falls in early February.

But this year those efforts have become more urgent after extreme weather in early October destroyed crops in Shandong - the country's biggest vegetable growing region - and as outbreaks of COVID-19 cases stretching from the northwest to the northeast of the country threaten to disrupt food supplies.

Last week, prices of cucumbers, spinach and broccoli had more than doubled from early October. Spinach was more expensive than some cuts of pork at 16.67 yuan ($2.60) per kg, a vegetable price index in Shouguang, a trading hub in Shandong, indicated.

Although prices have eased in recent days, economists expect a significant year-on-year increase in consumer price inflation for October, the first in five months.

The pandemic has brought an increased focus on food security, with the government drafting a food security law and outlining new efforts to curb food waste.

The commerce ministry said local authorities should buy vegetables that can be stored well in advance and also strengthen emergency delivery networks. Information about prices and supply and demand of commodities should be released in a timely manner to stabilise people's expectations, it added.

China also plans to release vegetable reserves "at an appropriate time" to counter rising prices, according to a state TV report late on Monday. It is not clear which vegetables China holds in reserves and how big those reserves are.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The state planning body has called for the timely replanting of vegetables, urging local governments to support fast-growing produce, according to the report.

China has about 100 million mu (6.7 million hectares) planted with vegetables, the agriculture ministry has said.

($1 = 6.3999 Chinese yuan)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.