June 7, 2006

China offers grain growers US$6.43 billion in grain subsidies

Vice Finance Minister Zhu Zhigang said on Tuesday (Jun 6) that China has dispensed RMB 51.5 billion (US$6.4 billion) in direct grain subsidies to its farmers in the past three years.

The vice-minister said China has allocated RMB 39 billion (US$4.86 billion) from its grain risk fund for direct subsidies to grain farmers during 2004, and it has earmarked RMB 12.5 billion (US$1.56 billion) in direct subsidies in 2006 to offset rising costs.

China's funding for direct grain subsidies totaled RMB 14.2 billion (US$ 1.77 billion) in 2006.

The vice-minister called on local departments to disburse this year's direct grain subsidies to farmers promptly.

China began to offer grain farmers direct grain subsidies in 2004 to encourage grain production and improve farmers' income after consecutive years of decline in grain output.