May 31, 2005

Increase in grain output supported by China's local governments
 

China's Ministry of Agriculture reports that the harvest of summer grain crops across the country has been going on as planned. An increase in the output of summer-harvested grain crops this year is also expected. The official report cites various factors contributing to the good outlook. This includes improved fiscal support and production guidance from the local governments at various levels and agricultural departments as well as the use of agro-technology.

Government subsidies to wheat growers have been increased from RMB100 million (US$12.09 million) in 2004 to RMB1 billion (US$120.92 million) in 2005. The number of subsidised regions has increased from six provinces last year to 11 this year.

According to the ministry, 130,000 agro-technicians have been assigned to rural areas so far, in order to guide 13 million rural farmers in making better use of fertilisers. The acreage allocated for top-quality winter wheat is also expected to reach 10.7 million hectares this year, an increase of 18.5 percent over last year.

Because summer grain crops make up only one-fifth of China's annual grain production yields, the ministry report acknowledged that early rice and autumn grain crops still play a crucial role.