China's top economic planner said on Sunday that Beijing would subsidise farmers and stabilise the prices of resources used in agricultural production as inflation pressures will remain high, while certain energy prices may be adjusted.
"The state will continue to subsidise the prices of electricity, water, fertiliser and energy used in agricultural production," the National Development and Reform Commission said on its website.
In addition, the government will raise the price it pays for rice and promote the price reforms of oil and natural gas, it said without giving any details. "Electricity prices will be adjusted at the proper time in certain areas to ease pricing abnormalities," the statement said.
China sets the price of petroleum products and electricity at artificially low levels to protect certain sectors of the economy, but has admitted the policy was causing shortages.
China was forced to raise prices 10 percent at the start of November to ease its worst diesel crisis in four years, when refiners shied away from supplying a loss-making market in the run-up to the winter demand season.
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