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China, the world's most populous country, has started buying rice from Vietnam and Thailand, raising the possibility of it becoming a net importer this year due to declining stocks after years of short crops.
Traders and industry sources said China had been looking for small parcels of rice in the past two weeks as Chinese domestic prices shot up in a fresh sign that the country's grain stocks, including corn and wheat, were running low.
Domestic rice prices jumped as much as 200 yuan ($24) per tonne in a day in some provinces following similar price leaps in corn in October and wheat in December that prompted a change in Beijing's policy to promote more grains production in China.
"We have seen them starting buying rice from Vietnam and Thailand," said a senior trader in Thailand, the world's top rice exporting country.

Copyright Reuters, 2004

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