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Supermarkets' vegetable prices fall
Last Updated(Beijing Time):2011-01-04 09:56

Soaring vegetable prices have been a cause for concern for Chinese consumers in recent times. To that end, the government has introduced direct selling, from vegetable producers straight to supermarkets to shorten the supply chain. Since then, vegetable prices in supermarkets have fallen by as much as 15 percent.

China's Commerce Ministry and Agriculture Ministry held a meeting to introduce farmers to supermarkets, to further lower the vegetable prices. All the attendees were invited to pay a visit to a vegetable base, where the produce is earmarked for supermarkets.

Analysts say this business model helps lower the circulation cost by around 15 percent, which in turn helps bring down vegetable prices.

Han Changbin, Agriculture Minister said "Vegetable prices in supermarkets are 10 to 15 percent lower than that in produce markets. But they pay higher prices when buying from cooperatives, which benefits the farmers."

Commerce Minister Chen Deming is asking local authorities to cooperate with finance departments, to provide support for supermarkets buying vegetables directly from farmers.

He says the business model proved to be successful in keeping prices down, when produce prices soared in October and November around the country. 
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