July 25, 2008
 

Henan's agriculture subsidies hit US$1.14 billion

Major Chinese agricultural province Henan has received a total of RMB7.78 billion (US$1.14 billion) in direct subsidies for grain and agricultural means in 2008, a dramatic 97-percent hike from last year, said a report.

Last year, Henan only had RMB3.83 billion (US$560 million) worth of subsidies.

This year, however, the subsidy for agricultural means has reached RMB6.34 billion (US$929 million), 50 percent more than last year.

In addition, the Chinese government has increased another direct subsidy of RMB685 million (US$100 million) for Henan on June 20 to reduce the impact of rising finished oil prices on farmers.

Henan, a central eastern Chinese province, is a growing agricultural force in China. It currently leads the provinces in terms of wheat production, and is the third-largest grain producer in China, with key crops such as wheat, corn and rice.