China to launch more measures to support grain production-Xinhua
Rice is seen at a local supermarket in Shanghai April 7, 2008. China will offer farmers more favourable treatment to encourage them to sow crops so as to guarantee grain reserves and ease inflationary pressures, Premier Wen Jiabao said in comments published on Sunday. REUTERS

China's cabinet will launch more measures to support the country's grain production, the official Xinhua News Agency reported on Wednesday.

Premier Wen Jiabao held a regular State Council meeting on Wednesday, analysing current grain production situation, Xinhua said.

The meeting came at a time when an ongoing drought in China's major wheat producing areas is threathening the country's wheat output this year, sending local and global wheat futures prices sharply higher.

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