With the country's population growing, China's grain supply is under greater pressure. By 2030, authorities say, China's annual grain production must grow by 100 million tons to feed a population of 1.5 billion. The country will depend mainly on north China for its grain needs.

And looking globally, the world food supply is set to tighten with the pressures of population growth, limited arable land and resources and climate change.

Based on the situation at home and abroad, the large area of north China's food production hit by a severe drought is expected to arouse concerns over grain supply and security. But some experts continue to hold optimistic attitudes.

"There's no need to be over-concerned. Because of surplus grain regulation, there is no large supply gap," said Zhuang Jian, a senior economist in the China office of the Asia Development Bank.

Xu Xiaoqing, Deputy Director of the Rural Economy Research Department of the State Council Development Research Center, said there is no need to worry about the drought, because wheat crops would turn green in March, lots of drought-beaten crops could recover by being watered. He also said China's sufficient grain reserve could offset extreme incidents leading to current year's food production being cut in half.

Food Price

Agricultural authorities and analysts debate whether China's food prices will rise because of the drought that has affected a large area of north China's major wheat production regions.

"It's a social anticipation that large-scale drought in north China will push up food prices," said Yin Changbin, a scholar at the Chinese Academy of Agricultural Sciences.

Li Chenggui, a professor at the Chinese Academy of Social Sciences, believed that, theoretically, the drought in the north would not push up prices, but some social factors might play a role in grain price growth.

Li believes that recent years have seen China's food prices going downward. The movement influenced farmers' enthusiasm and interests.

"So, a rise in grain prices is the result of social anticipation and it's a good thing," said Li.

Zhuang Jian believes that rising grain prices probably benefit farmers, but that will have a negative impact on common people, especially low-income groups in urban areas.

"Based on close observation of the markets, prudent adjustment of grain prices should be made by the government," said Zhuang. "The basic principle is to guarantee a stable grain supply and on this basis, balance should be made between farmers' interests and sound development of the markets."