February 11, 2008

China raises minimum purchase prices for wheat 

China's economic planner has raised the minimum purchase prices for wheat and paddy to encourage grain production and protect farmers' interests.

The minimum purchase price ranges from RMB70-RMB75 per 50 kilograms for wheat and RMB75-RMB79 per 50 kilograms for paddy, the National Development and Reform Commission said in a statement published on its Web site Friday.

Last year, the minimum purchase price was RMB69-RMB70 for wheat and RMB70-RMB75 for paddy, the Xinhua News Agency reported Friday.

In 2004, China started setting minimum purchase prices to prevent farmers from suffering losses when market prices for grains are low. The government buys wheat and paddy from farmers at the minimum purchase price when domestic prices are low, Xinhua said.

US$1=RMB 7.195 ( February 11, 2008)