January 8, 2008

China to focus on north-east region as grain demand hots up

Northeast China's Heilongjiang, Jilin and Liaoning provinces, which together account for one-sixth of the nation's acreage, have gained the Central government's attention as the nation struggles to balance rising meat and grain demand with supplies.

In an effort to guarantee grain supply, the government has targeted a 10-million tonne growth in output from the region this year.

Heilongjiang, the biggest of the three, accounted for half the country's inter-province grain trade last year, selling 22.5 million tonnes of grains outside the province in 2006.

Despite droughts, it managed to produce 39.655 million tonnes of grain, breaking a previous record set in 2006.

Liaoning province also reported a new record 18.35 million tonnes of grain in 2007, up 6.4 percent on-year.

China's measures to encourage grain production such as the abolition of the centuries-old tradition of agriculture tax along with various farm subsidies is expected to boost grain production further.

China's grain output reached 490 million tonnes in 2006 and is estimated at 500 million tonnes in 2007.