January 22, 2013

China allots US$19.6 billion for spring grain production

In order to subsidise spring grain cultivation, the Chinese government has allocated CNY122.2 billion (US$19.6 billion) from its central budget.

According to the Ministry of Finance (MOF) on Monday (Jan 14), the subsidies will be given to farmers to cover part of their springtime grain production costs.

The central government has also set aside CNY31.5 billion (US$5.1 billion) for the grain risk fund for 2013, as well as allocated CNY6.7 billion (US$1.1 billion) raised from local governments for the fund.

The fund, which stands at CNY38.2 billion (US$6.1 billion), was set up in 1994 in order to safeguard farmers' interests, stabilise the grain market and ensure food security.