Drought happening every year in China causes economic loss especially to agriculture. According to statistics, since 1950 drought has reduced at least 10 billion kilograms of crop production annually or 60% of the total loss from the natural disasters.

Half of the farmland in China has no irrigation schemes, and agriculture still depends on the natural conditions. 80% of the water conservancy projects were built before 1970, which are not working effectively today.

The indirect loss caused by drought is huge. Based on the price of 1990, it averages RMB85.23 billion a year.

In addition, drought also causes the over-exploitation of underground water, which lead to sinking of the ground and reversing of seawater. According to the statistics from the Ministry of Water Resource, every year eight billion cubic meters of underground water is over-exploited in China...