November 22, 2007

China to increase subsidies for soy

China's Ministry of Finance announced the planned increase of its subsidies for soybean seeds to US$53.9 million in 2008, from US$13 million in 2007.

Aside from subsidy increase, the government will also promote production of oil-bearing crops, the ministry said.

This year, the subsidies for oil-bearing crops were added with US$175 million, including US$134 million for rapeseed.

The prices of soybean and soybean products have been surging on China's spot and futures markets despite hectic trading.