January 24, 2011

China earmarks US$15 billion to support farmers

The Chinese government has allocated RMB98.6 billion (US$15 billion) for farmers nationwide in a bid to maintain steady grain output and boost farmers' incomes.

The bulk of the funding - RMB83.5 billion (US$12.7 billion) - is to be used in the purchasing of farm machinery such as equipment to plant seeds and reapers.

The remainder, RMB15.1 billion (US$2.3 billion), would subsidise farmers in growing crops such as rice, corn, and cotton, according to a statement released on January 20 by the Ministry of Finance.

The move came as most northern Chinese regions, plagued by a months-long drought, will continue to see cold and dry weather in the next 10 days, according to a forecast by the National Meteorological Centre.

The drought has affected some four million hectares of crops and left about 2.2 million people short of drinking water.

The ministry called upon finance departments at all levels to make detailed subsidy plans for farmers as soon as possible in order to ensure that farmers receive this funding before spring plowing.

In addition, the ministry urged local governments to make public detailed allowances for every farmer for public supervision, vowing to strictly prevent and punish embezzlement.

The State Administration of Grain (SAG) recently revealed that the total amount of grain purchased by various grain enterprises in the country last year surpassed 300 billion kilogrammes, for the first time.

Among a total of 301.1 billion kg purchased, some 30.65 billion kg of grain and oil were purchased for the purpose of holding the market price, which effectively increased production and farmers' incomes, SAG head Nie Zhenbang said.

Nie urged related departments to carefully examine the new situation of grain distribution in the next five years and continue purchases to ensure farmers' benefits and stabilise the market.