According to the latest statistics from the Ministry of Agriculture, China's farm product price dropped last year thanks to an abundant supply of agricultural produce.

From May to November last year, foodstuff prices dropped more than 11 per cent over the same period in 1998. Corn and wheat's prices were the most affected. Cotton, rapeseed, fruit and vegetable's price also decreased dramatically.

Cotton prices were less than 400 yuan for each 50 kilogram, more than 200 yuan lower than in 1998. Rapeseed prices dropped 17 per cents to 110 yuan for each 50 kilogram. The price of meat and poultry products also dropped considerably.

According to the State Statistics Bureau, the income of Chinese peasants has continued to increase despite the lowering of farm product prices. In the first three quarters of last year, the average income of peasants rose to 1,460 yuan, a 4.8 percent increase over the same period in 1998.