May 23, 2014

China raises state price for wheat by 5.4%

China's National Development and Reform Commission (NDRC) said that the government raised the state purchase price of wheat by 5.4% to help boost farmers' incomes in major growing areas.

The floor price for wheat was set at RMB2,360 (US$378.36) per tonne for 2014, up from RMB2,240 (US$359.12) per tonne in 2013. 

China, the world's top wheat producer, will start stockpiling the crop from farmers if the market price falls below the minimum level set by the state.

China is expected to reap a bumper winter wheat harvest starting next month, with output estimated to rise 1.5% to 117.6 million tonnes.

China's wheat imports in 2014/15 were estimated to fall to 3 million tonnes, down from 7 million tonnes in the previous year.