April 22, 2010

China raises rapeseed purchase price

China will buy more rapeseed for state reserves at a higher price of RMB3,900 (US$571) a tonne versus RMB3,700 (US$542) a tonne previously.

The agriculture ministry estimated in December that the country's rapeseed areas could increase by 2% to 6.87 million hectares.

But production in drought-hit south-western provinces, including Yunnan and Guizhou, were expected to fall by about a half from a year earlier, according to an official think tank. Rapeseed output in the provinces accounted for 7.3% of China's total in 2009.

Rapeseed is harvested in April and May.

The government will offer RMB150 (US$22) a hectare of special subsidy to 3.53 million hectares of winter wheat in 11 producing regions that are growing poorly. It will also provide an additional RMB100 million (US$14.6 million) of subsidy for agricultural machinery purchases after having earmarked RMB14.5 billion (US$2.1 billion) earlier this year.