June 19, 2007

China summer grain harvest to reach record high
 

China's summer grain harvest this year is expected to reach a record high, said Minister of Agriculture Sun Zhengcai.

Despite severe drought last winter, low spring temperatures across many regions, serious plant diseases and insect pests, the harvest looks promising thanks to the central government's efforts in strengthening policies to support agriculture, Sun commented.

Government direct subsidies towards grain and agriculture means of production total RMB42.7 billion (about US$5.6 billion) for 2007, up 63 percent from 2006. RMB8.77 billion in subsidies has gone towards improving crop strains, farm machinery, rational fertilisation and farm training, a rise of 47.4 percent compared with last year.

The government has also encouraged grain production by announcing that it will continue to maintain a minimum grain purchase price that will not be lower than that in 2006.