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May 14, 2012

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Veggie prices go up as arable land shrinks

WHEN cabbage is more expensive than pork, something is dead wrong in urban development.

On May 4, cabbage was sold for 15 yuan a jin (500 grams) in a supermarket in Jinan City, capital of Shandong Province.

At the same time, pork was sold for 10 yuan a jin. Jinan is not alone in having seen a whopping increase of vegetable prices from cabbages to carrots.

According to Xinhua news agency's nationwide monitoring, many vegetables have become more expensive since March, although China's overall vegetable prices have declined somewhat.

For example, prices of cabbage and tomato on May 2 soared by 75 percent and 20.9 percent respectively over those on February 20, or by 96.6 percent and 75.7 percent respectively over those in last May.

The upward spirial of prices of major vegetables is no small matter.

If vegetable prices continue to spiral up, it will be hard for China to cap its inflation growth at about 4 percent this year.

Bad weather is certainly to blame for rising vegetable prices, but another factor should not be overlooked: decreasing arable areas for vegetables in many big cities.

For instance, vegetable land in suburban Beijing has shrunk to 667 hectares from 11,333 hectares in the past. Now, 90 percent of vegetables consumed in Beijing are supplied from outside the city.

Where have those vegetable fields gone? Gone to high-rises one by one.




 

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