Executives of China's major edible oil manufacturers and guild
leaders were summoned to Beijing on Monday for a closed door
meeting at which the government required them to step up production
to rein in the soaring market prices.
An official with the National Development and Reform Commission
(NDRC) who asked not to be identified said it was understandable
for the edible oil processing firms to raise prices as the
continuous rise in the cost of raw materials had increased their
production costs.
However, the public had responded strongly to the price hikes of
edible oils, coming as they did with rapid rises in the prices of
other goods, the official said.
Edible oil makers were told to "deepen their sense of social
responsibility" and "bear the overall interests of the country in
mind".
Incomplete statistics from various regions show prices of
domestic edible oils rose by 20 percent from November last year to
June as the prices of peanuts and other oil-bearing products had
risen.
But the latest weekly market monitoring report by the Ministry
of Commerce showed the prices of cooking oil fluctuated only
slightly from October 22 to 28, with the prices of peanut oil
edging up 0.1 percent from a week earlier, while rapeseed oil was
down 0.1 percent, and soybean and blended oils were basically the
same.
In a statement after the meeting, the NDRC spelled out five
requests including the supply of more small-package oil to meet
market demand.
Oil processors were not allowed to disturb market order or stoke
up fears for price hikes by hoarding raw materials, rigging raw
material supply, cutting production or restricting supply.
Price hikes must be kept within reasonable margins and be made
when absolutely necessary, it said, adding that oil processors must
enhance cost controls, improve management and absorb the costs from
raw materials as much as possible.
The NDRC also warned large cooking oil makers not to collude in
setting prices or provide short measures or shoddy products.
Under current price conditions, enterprises should transfer part
of their interests to the people and cherish their public
reputation, it said.
Industrial associations were required to provide guidance to
firms, make sure they abide by laws and regulations, admonish
enterprises in cases of unfair competition, and keep market
supervisors informed of the malpractice.
If the price hikes exceeded the extra production costs, market
supervisors would step in, it warned.
Without identifying the participating cooking oil makers, the
statement said that representatives from business communities had
promised to maintain market order with their actions and contribute
to the stabilization of market prices.
China's consumer price index, a key measure of inflation, rose
by 6.2 percent in September after hitting an 11-year high of 6.5
percent in August, while food prices jumped by 16.9 percent from
January to September over the same period of last year, figures
from the National Bureau of Statistics showed.
(Xinhua News Agency November 6, 2007)
