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What will happen when China suffer floods
Anyone want share with us how this will affect or no impact on China shares like China Farm or China Food?
BEIJING: Floods and other natural disasters are hurting China's grain output, the government said Monday, raising the prospect of higher food prices with inflation already at uncomfortably high levels.
"Agricultural production is facing various problems, including flooding, drought, typhoon, plant diseases and insect pests," the agriculture ministry said in a statement posted on its website.
A decline in grain production will drive up food prices," Sealand Securities analyst Yang Yongguang was quoted as saying.
The warning comes after the government released data last week showing that inflation rose 4.4 per cent in June, and 3.2 per cent in the first six months of the year, with food prices among the biggest drivers.
Food prices have jumped 7.6 per cent in the first half of 2007. -