An ox-cart rode along a bumpy road in the suburbs of Kunming, carrying a woman and her son to a water reservoir several kilometers away.Armed forces help with drought relief Artificial raintChallenge inflation management
The severe drought ravaging southwest China, home to an ingredient in the anti-flu drug Tamiflu, may prompt Roche, Tamiflu's biggest producer, to use substitute ingredients.
The current drought in southwest China that has threatened grain production in the region would not have a major impact on national food prices, experts said, but added that the risk of inflation may rise if the drought spreads further.
South China's severe drought has lowered the water level of the Wujiang by about one meter. That has led to most sailings being canceled for fear of hitting rocks, bringing a great loss to ship companies.
Not all is well in Chenggong, a county 20 minutes drive from Kunming, the capital of Yunnan province and the center of Asia's biggest flower trading market.
As the brutal drought tightens its grip on southwestern China, shares of some food and medicine companies have begun to rise due to plummeting output and an expected price increase for rice, sugarcane and herbal medicine in these regions.
Severe drought worsens in SW China
Flowers fail to bloom as drought worsens
The lingering drought in Southwest China has caused heavy forest losses, said the State Forestry Administration (SFA) Thursday.
Chinese Premier Wen Jiabao has warned that meeting this year's grain output goal of 500 billion kilograms would be "a test for sure" as severe drought in the southwest is likely to continue.
The severe drought in southwest China has greatly influenced the local liquor business. Photos
China drills more wells amid drought
Yunnan's flower industry wilting
Drought challenges grain harvest: Wen
The severe drought in Southwest China has seriously affected Yunnan's flower industry - one of the chief industries in the province.
The severe drought in Southwest China has caused a drop in Yunnan province's electricity supply, as about 70 percent of the power in the province is from hydropower stations. Focus on SW China drought
Relief efforts Slide
Southwest China's drought has caused the prices of goods to soar, affecting much of the food chain, including flowers, tea, herbs, fruit and grain. Relief efforts: Trains bring water to Yunnan, Water a precious gift, Celebrities donate