• Corn production has increased in China, causing prices to go down.

Corn production has increased in China, causing prices to go down. (Photo : Xinhua)

The prices of corn and other grains have significantly dropped compared with levels in 2014, with experts predicting that corn prices will remain weak in the foreseeable future, according to a report by the Global Times.

Compared with last year, corn prices have dropped around 20 percent. Last year, traders purchased corn for about 2.1 yuan per kg, with the price dropping to about 1.6 yuan per kg this year, according to Chang Liansheng, a farmer in Changzhi, Shanxi Province.

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"I can barely earn money from growing corn," Chang said in a statement to the Global Times on Sunday.

Media reports have also said that the price of wheat has dropped compared with last year, stating that the drop in prices is likely to reduce farmers' income, which will affect consumption and cause downward pressure on economic growth, according to Ma Wenfeng, an analyst with Beijing Orient Agribusiness Consultant Co.

According to Ma, the drop in domestic grain prices is caused by the high grain production volume, high inventories and low international grain prices.

Last year, China's grain production increased by 0.9 percent from the previous year at 607 million tons, becoming the 11th consecutive year that experienced an increase in grain production, according to the National Bureau of Statistics.

According to experts, the trend will continue this year.

However, comparatively high production costs and low efficiency have caused grain prices to be much higher than in other countries. Per ton, imported corn costs about 1,000 yuan less than domestic corn, according to cnagri.com, a website operated by the Beijing Orient Agribusiness Consultant Co.

Ma said that prices of imported wheat and rice are also much lower abroad.

China has imported a total of 4.37 million tons of corn during the first eight months of this year, a 173-percent increase from last year, according to cnagri.com.