China is able to guarantee stable domestic food supply and price level due to the abundant grain reserves, said the National Development and Reform Commission (NDRC) on Tuesday. In March, international rice prices rose to their highest level in 19 years, and wheat prices rocketed to a 28-year peak. At the same time, China's domestic prices only reported mild increases, up 5.7 per cent in January and 6 per cent in February. "China's grain output reached 500 billion kg in 2007, 70 billion kg more than that of 2003. The total production of rice, wheat and maize surpassed 450 billion kg in 2007,' said the NDRC on its website. Official figures showed that the output of rice, the most important stable food, topped 185 billion kg last year, slightly more than the domestic consumption volume between 180 to 185 billion kg. The country's current ratio of grain reserves to consumption is higher than the 17 to 18 per cent level, which is regarded as a safe minimum for global stocks, said the NDRC, the country's economic planning agency. Premier Wen Jiabao said in April the country had abundant grain reserves at 150 million to 200 million tonnes. The central government vowed this year to spend more than 562 billion yuan ($80.1 billion) to support farms and the rural sector, 130.7 billion yuan more than last year. The government decided in March to spend another 25.25 billion yuan in addition to this year's rural budget, mainly to subsidise farmers' purchase of seed, diesel, fertilizers and other production materials. The country this year has decided to strictly control grain export to ensure domestic supply and fight inflation.