China posts record grain output for 2008

China's grain production registered an all-time high of 528.5 million tonnes last year, posting a 5.4 percent increase thanks to increased subsidies to farmers, the National Bureau of Statistics (NBS) said on Thursday (January 22).

The bumper harvest put pressure on local grain prices and prompted the government to buy large amounts from farmers for state reserves to increase prices and help boost incomes.

NBS head Ma Jiantang said the bumper grain harvest will ensure stability given the financial crisis. The good harvest has proved that China is able to feed its own population, he said.

Beijing has agreed to buy 11 percent of the country's total harvest to 58.5 million tonnes, since late last year to prevent domestic prices from falling amid a global sell-off of commodities.

The robust yield has also led the government to relax on its grain exports, which was almost halted earlier last year in an effort to lock in more supplies.

Though the bureau did not give any breakdown on grains output, the China National Grain and Oils Information Centre (CNGOIC),gave an initial breakdown in its monthly report and raised the country's corn output to a record 165.5 million tonnes for 2008.