Further, the MLR sent geological survey teams from its nine affiliated units and eight provinces, including Sichuan, Yunnan and Guizhou that suffered severe drought in early 2009, to the eight provinces.

The survey teams brought 100 sets of advanced geophysical prospecting instruments and 320 sets of drill machines and planned to dig 1,350 wells in the provinces to ease water shortages affecting people and livestock, especially those in mountainous areas, and to strengthen local irrigation.

The MLR had previously put in place a series of measures to relieve drought and find water, such as making underground water layout maps and sending experts to drought-hit regions to give technical guidance.

Meanwhile, authorities in drought-hit regions are reportedly taking steps to ensure thirsty fields are irrigated.

To combat the devastating drought, Shandong has allocated 800 million yuan ($117 million) in emergency funding and repaired and dug more than 30,000 irrigation wells.

To prevent heavy losses from the dry spell, Hebei has transferred 70 million cubic meters of water from the Yellow River and has reserved another 200 million cubic meters of water.

China National Radio quoted Li Qinglin, head of the province's water resources bureau, as saying Hebei would bring in more water from other provinces and start up all irrigation facilities to water dry fields.

Shanxi has allocated 230 million yuan ($33.67 million) to subsidize pumping stations and irrigation projects and another 50 million yuan ($7.32 million) to stabilize water prices for rural residents.

Grain security

On February 8, the UN Food and Agriculture Organization (FAO) issued a warning over the impact of drought on China's winter wheat harvest.

Wheat prices in China had been rising rapidly in the last few months, and average flour prices in the country rose more than 8 percent in January from the previous two months, the FAO said.

China is the world's biggest wheat producer, with output exceeding 110 million tons last year, according to the China National Grain and Oils Information Center.

Traders believed an erosion of the nation's self-sufficiency could have a major impact on the global wheat market, driving up prices, said Chinese agricultural experts.

But they believe it is still too early to predict a decrease in the country's wheat output.

"Although the latest snow has not been heavy, the recent snowfalls will cumulatively play an active role in mitigating the droughts," said Lu Bu, a researcher on agricultural resources at the Chinese Academy of Agricultural Sciences. "We can still expect wheat harvests if the major growing regions have sufficient rainfall next month."

Yao Jingyuan, chief economist at the National Bureau of Statistics, said it still needed more time to assess the current weather's impact on grain prices.

China's grain output achieved the seventh consecutive year of growth in 2010, along with adequate stockpiles, laying a crucial foundation for price stability, he said.

Data from the National Development and Reform Commission show current grain reserves are equal to about 40 percent of total grain consumption in 2010, which is thought to be enough to satisfy domestic demand and avoid a price hike.

Meanwhile, the efforts of farmers and local governments to mitigate the impact of the drought, coupled with a large inventory of grain, are also expected to reduce that risk.

"We have the confidence and capability to ensure efficient supply of agricultural products, particularly grain, and to keep overall price levels basically stable," said Premier Wen at the national teleconference.