August 12, 2010

 

China raises subsidies for corn farmers

China's State Council has decided to offer more subsidies to corn farmers to help ensure a strong grain harvest amid the threat of adverse weather this year.

 

The cabinet approved an additional RMB1.1 billion (US$162.4 million) in subsidies to farmers for buying fertilisers and for pest and disease control to improve the autumn grain harvest due in October.

 

The autumn grain harvest, which includes mainly middle and late-season rice and corn, accounts for 70% of the country's total grain harvest.

 

Production still faces unfavourable conditions in coming months despite an increased acreage for grain planting this year, according to the report from a State Council meeting.

 

Low temperatures and floods had planting of late-season rice and corn, which are more likely to be hit by early frost, particularly in the main corn area in the northeast, the report said.

 

China has imported the largest amount of corn in a decade since April from the US because of bad weather last year.