April 8, 2011

China earmarks US$3.44 billion for major grain-producing counties

China's central government has allocated RMB22.5 billion (US$3.44 billion) in cash rewards to its major grain-producing counties, the Ministry of Finance (MOF) said Thursday.

The fund was higher than the RMB21 billion (US$3.21 billion) granted to more than 1,000 major grain-producing counties all over the country in 2010, which produced the bulk of China's total grain output, according to the MOF.

China launched the reward programme in 2005, with RMB5.5 billion (US$841 million) being granted in cash rewards to some 800 major grain-producing counties, to solve the counties' financing difficulties and encourage them to raise grain production.

The reward will be granted in proportion to the counties' grain acreage and output and can be spent on agricultural development, technological innovation, education, culture, health work and any other fields to improve rural economy and further raise the quality of the farmers' life, according to earlier statement made by the MOF.

China's grain output rose 2.9% in 2010 to 546.41 million tonnes, marking the seventh consecutive year of growth, and the State Council, the Cabinet, said earlier this year that it aimed to keep its 2011 grain production over one trillion jin (1 jin=500 grams).