SHANGHAI, CHINA - CHINA'S national economic planner said on Tuesday grain reserves were sufficient to ensure domestic supplies, adding the rise in global grain prices would only have a limited impact on the country.

The supply and demand of grain is basically in equilibrium with adequate state reserves and restrictions on grain exports in place, the National Development and Reform Commission said in a statement on its website.

'With sufficient domestic supplies and strict control on grain exports, the increase in international grain prices does not have a major impact on the domestic market,' a spokesperson.

The spokesperson noted China produced over 501.5 million tonnes of grain in 2007, almost level with the nation's annual consumption of 510 million tonnes.

China mainly relies on domestic supplies for staples like wheat, rice and corn, according to the spokesperson.

China's inflation reached 8.0 per cent in the first three months of the year. In February, it climbed to 8.7 per cent, the highest in nearly 12 years, before easing slightly to 8.3 per cent in March.

High prices, and their potential for social disruption, have emerged as one of the key concerns facing China's ruling Communist Party as it seeks to foster both stability and a long-lasting economic expansion.

China scrapped tax rebates for grain exports late last year and levied taxes on grain exports in 2008 aimed at reining in galloping inflation and ensuring stable domestic food supplies.