February 26, 2010

China to ensure grain production above 500 million tonnes in 2010

The Chinese government will make every effort to ensure national grain output exceeds 500 million tonnes in 2010, the Ministry of Agriculture said on February 23.

As of February 8, the central government had earmarked RMB86.7 billion (US$12.7 billion) to be used as direct subsidies to help farmers sustain output, the ministry said in a statement on its website.

China has produced at least 500 million tonnes of grain annually in the past three years, according to the statement, which also noted that agricultural production still faces threats from natural disasters.

The State Council issued a notice in October 2009 outlining measures it will take to ensure stable grain output in 2010, including raising minimum purchase prices for wheat and rice.

The government will continue with its seed subsidy scheme for major grain crops. It will also step up the construction of irrigation systems and other agricultural infrastructure to enhance crops' drought resistance, the council said.  

National grain output in 2009 rose 0.4% to 530 million tonnes, according to the National Bureau of Statistics.