China sold 13.5 billion kilograms of rice and wheat through public auctions last year to stabilize soaring grain prices, a meeting on national grain production and supply was told on Wednesday.

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The auction has increased supply in the market and stabilized grain price, said Nie Zhenbang, head of the State Grain Administration.

The cereals had been purchased from farmers at a pre-set minimum price to protect the interests of farmers.

If market prices for major grains drops below the government-set minimum price, state-owned enterprises will intervene and buy the grain from farmers at the minimum price.

The market prices of major grain products, including rice, flour and cooking oil, surged by six to 10 percent in cities such as Beijing and Shanghai from November to early December.

This is despite the fact that China's grain output hit a seven-year high of 490 billion kilograms in 2006.

The government purchased more than 49.2 billion kilograms of grain from farmers at the minimum price last year.

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