May 30, 2007

China to continue wheat minimum price policy

China would continue its practice of a minimum price policy for purchasing wheat from farmers this year, the National Development and Reform Commission (NDRC) announced May 25.

The minimum price for purchasing wheat from farmers this year benchmarks on the GB grade-III wheat, giving RMB 0.72/500 grammes for white wheat and RMB 0.69 yuan/500 grammes for red wheat and mixed wheat.

The NDRC said the minimum wheat price serves only as a precautionary measure as the current market price of wheat is higher than the minimum price.

The minimum wheat price comes into force only when the market price falls below the state minimum price to protect farmers' incomes.