Food price inflation has aroused growing concern worldwide. There is rising price pressure for major grains in China this year as a result of deficient supplies, soaring agricultural produce costs and fluctuations on the international futures markets. The extreme weather this past winter and severe drought that hit northern China this spring, will make it harder to ensure grain supplies. As our country is mainly self-sufficient in grains, rising rice prices on the global markets will not have much impact domestically. China can keep grain prices stable amid supply shortages and rising agricultural costs thanks to our abundant grain reserves.