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A large number of buyers are also contributing to this summer's high price for grain. They are competing against each other, and driving prices up further.
A flour mill in Henan Province says their purchase plan is no longer possible, as the price of wheat in the area is now beyond their budget. Instead, the owner says he will visit other provinces to buy wheat. In Shaanxi province, grain brokerages are even setting up offices at farmers' front doors, to get as close as possible to the source.
This year, various buyers including state-owned grain reserve companies, flour mills as well as foreign-invested enterprises are all joining in the race to buy up grain. And farmers are reaping the rewards of the purchasing frenzy.