But if prices go up too rapidly, they will affect the livelihood of many low-income people, and social stability, it said.

Generally welcoming the policies listed in the circular, economists and food market specialists called for their effective implementation.

Wang Jinmin, a researcher with the Institute of Agricultural Economics and Development of the Chinese Academy of Agricultural Sciences, told China Daily that if the authorities can fulfil all the measures, China will be effective in stopping the spiralling grain prices.

"We must make sure that no businesses sacrifice the public interests for their own profits," he said.

According to Wang Huijiong, vice-president of the Academic Committee of Development Research Centre of the State Council, under the market economy, it is tough for the government to balance the benefits of both producers and consumers.

When comparing urban supplies with the interests of "the much bigger rural population," he said, letting the price increase within a reasonable band" can actually help China solve its rural problems.

Both experts said prices had also been rising rapidly for farmers' procurement of raw materials - such as pesticides and fertilizers.

Wang Jinmin noted that although the release of government grain stocks would help ease the situation, it was only a short-term solution.

Future grain prices in China could be influenced by other factors on the international market.

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