April 24, 2009
China to increase farm product procurements
China's State Council announced Wednesday (Apr 22) in its executive meeting that it will strengthen reserves for staple farm products and continue to implement the minimum purchase price policy for grain.
The Chinese government will extend soy reserves deadline to end-June from end-April. It will also continue to purchase rapeseed in the major production regions at prices higher than the market price.
The State Council had earlier announced that the government will further raise the minimum purchase price for grain this year, with wheat to increase RMB0.11 (US$0.016) over the previous year.
In order to stabilise farm products prices amid the global economic downturn, the government has procured 40 million tonnes of corn and six million tonnes of soy for state reserves since last October.
