THE rise in price for grains and edible oil over the past week has not led to panic buying in Shenzhen, according to major retailers.

"Grains and edible oil account for only a small part of the expenses for most people in Shenzhen. Some are even unaware of the 10-percent increase," said Zeng Qiang, a public relations manager with Wal-Mart.

Wal-Mart increased the edible oil price by 10 percent but did not change grain prices.

Vanguard said there was no unusual change in the sale of grains and oil and "slight changes" in prices were just normal market fluctuations.

Prices of domestic rice have increased 7 to 14 percent since Oct. 12 in the city's major wholesale markets, the Daily Sunshine reported Friday.

The paper said the price of edible oil rose by an average of 10 percent in supermarkets while the price of bulk peanut oil surged 20 percent in wholesale markets.

Shirble's Jingtian store reported no change in its grain and edible oil prices. A store manager said it might adjust prices if the trend continued. He said there was no apparent increase in the sale of agricultural products.

The price increase resulted from a drop in grain production in China in recent years, said agriculture bureau spokesman Mr. Zhang. He said the price increase could be long-term but there was no need to panic as the government had always ensured adequate food supplies.

"After all, we have sufficient stocks of grains and foreign reserves,"said Zhang.

Unlike their big rivals, who can rely on stock for some time, small retailers adjusted prices to reflect the market fluctuation.

Experts did not expect panic buying as happened during the SARS period because the price changes were a reasonable reflection of market demand and supply.

 
Editor: Wings