Wen said more must be done to help the nation's agriculture sector after data was released on Wednesday showing food prices in China surged 21.0 percent in the first quarter, driving inflation to 8.0 percent.

"The most prominent problem in the domestic economy is that prices are still running at high levels," Wen said in comments published in various Chinese media outlets on Thursday.

"Curbing price rises... should be put into an even more outstanding position."

Wen said boosting agricultural and grain production was one of the most pressing priorities in this regard.

Following this, the finance ministry announced a special 100 percent duty on exports of fertilizers and their raw materials to ensure domestic supply over the ploughing season and "guarantee this year's grain harvest".

The measure, which will take effect from April 20 to September 30, is the second time this year that China has raised the duty on fertilizer exports and will bring the tariff to 135 percent.

The hike also followed a duty of up to 25 percent imposed in January on several grain exports and a subsidy of 25.3 billion yuan (3.6 billion dollars) the central government announced in March to farmers to encourage output.

For China's communist rulers, the soaring cost of food is a particular concern as it has the potential to unleash social unrest, as was the case in the lead-up to the 1989 democracy movement that was eventually crushed.

Food prices have emerged as one of the biggest global economic concerns this year, with the International Monetary Fund and the World Bank warning of the immense dangers this trend could have on political stability in developing countries.

Wen made his remarks at a meeting of the State Council, or cabinet, on Wednesday as the economic data was released.

In March alone, inflation eased slightly to 8.3 percent after reaching 8.7 percent in February, but remained well above the government's full-year target of 4.8 percent.

As he announced the figures, National Bureau of Statistics spokesman Li Xiaichao also identified the farming sector as vital in the efforts to contain inflation.

"Since last year, food has been the main factor behind inflation, and it very much remains the case this year," Li said.

"We need to pay special attention to enhancing agricultural production, especially grain and pork production."

However state press reported on Thursday the amount of farmland in China shrank closer to critical levels last year.

The rush in modern China to turn traditional farming areas into industrial zones or residential areas for expanding cities was again one of the factors behind the decline in 2007, the China Daily said, citing the land ministry.

Last year, the amount of arable land fell by 40,700 hectares (100,500 acres) to 121.73 million hectares, according to the ministry.

The government has for many years warned of a critical situation when the amount of farming land fell to 120 million hectares.

The head of the ministry's planning commission, Hu Cunzhi, was quoted as saying that 120 million hectares would continue to be regarded as the critical level, unless there was a "biological revolution" that boosted farm yields.

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