*****Worst Drought in a Millenium Creates Severe Food Shortages in China*****
The worst drought in a millenium is creating severe food shortages in southwest china.
1) Drought has now seriously impacted the provinces of Guangxi, Sichuan, Guizhou, Yunnan, the city of Chongqing, and the surrounding areas, affecting 61.3 million people
2) The drought affecting Yunnan exceeds any from over the past millennium.
3) More than 3.1 million people are short of food, and 18 million people are short of drinking water.
4) Some villagers of Xiaowanshan Village in Yunnan Province are surviving on the so-called "starving sheep plant," a wild plant that sheep normally refuse to eat.
5) The drought will likely to continue till May as no substantial rainfall was expected ahead of the raining season Food Production is suffering
1) Water for 11.7 million large livestock and 5 million hectares (12.5 million acres) of farmland are compromised.
2) More than 1.15 million hectares (2.9 million acres) of farmland is already decimated. Government Response to drought
1) Chinese authorities have reacted to the drought in southwest China are by:
A) Allocating 155 million yuan (about three yuan (US$0.5) per person) for drought relief.
B) Importing vegetables from non-drought-stricken regions to increase supply
C) Cracking down on food hoarding and price gouging: Vegetable vendors will be fined up to 100,000 yuan (14,650 U.S. dollars) if they are found involved in jacking up vegetable prices.
D) Silencing the press: Chinese media have been banned from reporting 18 subjects including food safety and the rising price of cooking oil.
E) downplaying problems: Chinese state radio has said that the ongoing drought in the south west of the country will only have "a very limited" impact on prices of staples such as grains and rice.
Food inflation rising
1) The drought is causing speculation of further inflation rises as it damages hundreds of millions hectares of crops and disrupts spring planting.
2) vegetable prices continued to surge even after the Chinese Lunar New Year when prices usually fall.
Conclusion: China has now suffered two record breaking droughts in a row. This year's drought hit southwest China and last year it was the Northeast (see *****Northern China hit by worst drought in 50 years*****: [link to www.marketskeptics.com] China is going to be seeing some serious food inflation.