November 28, 2007

China to raise soy subsidies

China will increase its soy subsidies to US$54 million in 2008, from US$13 million in 2007, according to the Ministry of Finance.

The ministry said that aside from a subsidy increase, the government would also take measures to promote production of oil-bearing crops.

This year, subsidies for oil-bearing crops were added with US$175 million. Around US$135 million was also allocated for rapeseed.

The prices of soy and soy products have been surging on China amid hectic trading recently.