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By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-07-30 17:20

Guangdong will implement an emergency price control plan on August 1 this year to prevent prices of grain from growing too fast, according to the Price Control Administration of Guandong Province, the Information Times reported today.

The price control measure will apply to various grain products such as rice and flour in both wholesale and retail markets.

If the price of grain grows more than 50 percent in a seven-day period, the supply is in shortage, and the panic grain buying lasts for more than 15 days, the profit margin and price differentials in grain processing will be controlled.

If the price of grain increases by more than 100 percent during a seven-day period, the grain is in a serious shortage, and the panic buying is severe and grain is out of stock in some areas, the government will control the price differentials in both wholesale and retail.

The price control administration will offer the emergency plan to the provincial government for approval.

A source close to the emergency plan said that the measure doesn't signal expectations that the price of grain will see a dramatic increase in the near future.