CHINA

Grain Prices Going Up: China announced higher prices for grain last week, moving a step closer to eliminating costly food subsidies. The increases for rice, flour, corn and other grains were part of the government’s effort to bring market forces into greater play. For decades, urban residents have been allocated grain rations at artificially low prices, while the amount the state has paid to grain farmers has gradually increased. Making up the difference has cost the government billions of dollars annually and contributed to worsening budget deficits. Last year’s deficit is estimated to have topped $3.3 billion. Starting April 1, urban residents will pay the same price for their grain rations as the state pays farmers, the State Council announced. The announcement was reported by the official Xinhua News Agency and read on the national television news.