China is forecasting a record grain harvest this year with production expected to exceed 550 million metric tons.

Officials said Thursday the harvest will mark the eighth consecutive year of increased grain production. But the rise will not be enough to prevent a modest increase in prices because of rising costs to farmers.

With a population of 1.3 billion people, China is the world’s biggest grain consumer as well as one of its largest producers. Any failure to meet domestic demand forces China to turn to world markets, driving up food prices around the world.

Chen Xiaohua, China’s vice minister of agriculture, told reporters Thursday that higher grain prices and increased government subsidies had encouraged farmers to grow more grain.

He said the government’s goal is to keep prices stable by gradually raising the minimum purchase price.