CHANGSHA -- Central China's Hunan province, a major rice grower in the country, has established an index on the production cost and sales price of rice, the first of its kind in China.

The index gives a detailed calculation of the production cost as well as wholesale and retail prices of rice in the province since January 2010, according to the Hunan Commodity Price Bureau, which manages the index.

Experts say the rice index will help China, as one of the world's major rice producers, setting rice prices on the international market.

"The rice index will serve as a useful reference for the government to make policies on farm produce pricing," said Wang Yongzhi, head of the China Price Association.

"It will also help in the production and marketing of farm produce," Wang added.

The index data will be released on the 10th day of each month, said Gong Xiusong, head of the Hunan Commodity Price Bureau, noting that it might be released every five days during the peak season or if the price of rice fluctuates dramatically.

Hunan ranks first in rice production in China, contributing about one fifth to the country's rice output, according to Gong.