June 25, 2007

China to spend RMB 6.5 billion to cool pork prices

China has revealed plans to spend RMB 6.5 billion (US$ 850 million) this year to contain pork prices, which had been climbing for the past few months, the Ministry of Finance said.

The central government would allocate RMB 3.8 billion, mainly for an insurance scheme covering sows  from disease and natural disasters.

Pig breeders will get an annual subsidy of RMB 50 for every sow insured.

The central government would also spend RMB 470 million this year to help people with low-income, with another RMB 280 million to be allocated to subsidize college students.

The central government has previously allocated RMB 285 million for a mass immunization programme, which would also be subsidised by local governments.

China's pork prices have risen nearly 30 percent from March to April this year.