China to Release Grain Stockpiles to Earthquake-Hit Sichuan

China will release grain and vegetable oils from stockpiles to supply earthquake-hit Sichuan province, the state-owned China National Grain and Oils Information Center said in a report today.

The State Administration of Grain will release grains and vegetable oils from local branches of the state reserves to "ensure the public and relief workers there have enough to eat,"said the report. The 7.9-magnitude earthquake that struck Sichuan province on May 12 may exacerbate China's inflation, which rebounded to 8.5 percent last month, close to the highest level in 11 years.

"Food prices in Sichuan are unlikely to fluctuate much"with more supplies arriving, the report said. The government will"firmly crack down on any hoarding, or colluding to raise food prices and any other illegal activities involving price manipulation,"it said.