Flooding in southern China is heavily affecting the region's important agriculture sector. Several provinces that have suffered severe flooding are seeing their yields decline. More than 28 provinces have been affected so far, with direct losses of near 150 billion yuan. 

The torrents in many provinces in southern China have flooded grain, livestock and vegetable fields.

Flooding has been heaviest in Hubei, Anhui, and Jiangsu provinces and so far, more than five million poultry and 90,000 pigs have drowned there in the high waters. Vegetables are also hard to get because transportation had been cut. Wholesale prices in the area have risen 16 percent.

Experts say the severe weather has caused rising inventories in some produce.

"Certain produce is affected by floods. One is cotton. Quality cotton is in short supply. Another part is fodder. The producers' inventory often last ten days. But now many of them have built up 20 or even 30 days of inventory," said Sun Guangmei, agriculture researcher of Sublime China Information Group.

Analysts say the disruptions will shake up market prices by threatening regional supply and demand. But the upheaval may not last long.

"The floods' impact on agriculture produce may be reflected in the short term. But in the long run, the low price levels of agriculture produce may remain for the rest of the year," said Li Guoxiang, researcher of Rural Dev't Institute, CASS.

The Chinese government appropriated 500 million yuan last week to support local authorities. Analysts say the next couple of months may see continued rainfall in southern China, and it will crucial to prevent continued flooding.