December 10, 2004

China to Increase Agriculture Sector Aid, Grain Acreage in 2005

China will provide the agriculture sector with more support in 2005, according to Ma Kai, the head of the National Development and Reform Commission.

However, after a bumper crop this year, grain production for 2005 will face some constraints, including limited potential for increasing grain acreage, yield per unit, government investment as well as purchasing prices, Ma was quoted as saying.

The NDRC is China's main policy-making body for economic issues.

Nonetheless, the government will maintain and protect farmland in 2005, expand grain acreage, increase agriculture tax cuts and improve direct subsidies to grain farmers.

Ma was reported as saying that the government will increase expenditure for the agriculture sector in 2005 and encourage investment from other investors.

According to the senior official, the government will speed up the establishment of a pre-warning system for national food security, balance the domestic market for major grains, as well as organize and implement grain imports and exports in a timely manner, in order to prevent any sharp fluctuations in grain prices.

Estimates for grain acreage, output or trade in 2005 were not provided.