Commodity Online
BEIJING : Northern China is facing one of the severe drought – most severe since 1951 - which is likely to affect its grain production – chief among them wheat – sparking speculation that wheat prices may go up in future.

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Experts say this had to happen as this region has close to 40 per cent of the total population and 50 per cent of arable land but less than 20 per cent of water available in China. Massive industrialization and urbanization worsened the situation.

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Northern China is its breadbasket and its vast 9.3m hectares grows wheat as one of the main crops. But Office of State Flood Control and Drought Relief Headquarters states that more than 43 per cent of the wheat crop is likely to be lost. Local media reported that this figure could be as high as 63 per cent.

It has already reported to the government that 3.7 million people and 1.85 million livestock have already lost access to drinking water.

China has put in place immediate measures to counter this. Other than 100m yuan of funding to help farmers, rains through seed clouding are also planned.