December 13, 2010

China to raise grain purchase prices

China's Ministry of Agriculture said it will hike the minimum purchase price for grains and improve storage systems during the next five-year plan (2011-2015).

The ministry's spokesman Chen Mengshan said on December 8 the agriculture development plan for the 12th Five-Year Plan has taken shape and major efforts will be made to ensure food security.

China produced 546.4 billion kilogrammes of grain this year, hitting record high, according to Chen. This is also the seventh consecutive year grain output has increased in China.

Chen also said China will further support new energy development, mainly biogas, in rural areas. China has been investing heavily in biogas development every year.

Analysts predict listed companies engaging in biogas appliance development and production will benefit from the policy support.