January 13, 2009

China's grain enterprises bought 291.8 million tonnes of grain from farmers last year, which stabilises domestic grain prices and eases price pressures on farmers, said State Administration of Grain administrator Nie Zhenbang on Monday (Jan 12).

The government had ensured sufficient grain supplies at stable prices for domestic markets, despite fluctuating world prices and natural disasters such as the severe winter and the May 12 earthquake, said Nie.

State-owned enterprises bought 170.4 million tonnes of grain last year, including 42.05 million tonnes of wheat and 8.5 million tonnes of corn, easing price pressure on farmers and protecting their interests, said administration figures.

Nie said the enterprises had ensured supply security, raised purchase prices and boosted grain prices. Other entities were also encouraged to purchase from farmers to increase liquidity of grain and help bolster prices.

These measures have increased farmers' incomes nationwide by more than RMB50 billion (US$7.3 billion).

This year, the government will implement measures to boost farmer confidence in the grain market, including raising purchase prices, offering subsidies for farming tools and seeds purchases, boosting state reserves and encouraging moderate exports, according to Song Hongyuan, director of the Ministry of Agriculture's Rural Economic Research Centre.