Soy-processing firms get subsidies from Chinese government

China will offer appointed processing companies subsidies of RMB160 per tonne (US$23.43) for soy purchases with effect from December.

The subsidy policy will last until April 30 of next year. It aims to lead soy-processing enterprises into purchasing this year's soy in northeastern areas, the country's largest soy production base.

Meanwhile, the Chinese government will continue to implement reserve policies in north-eastern areas. It has set corn's purchase price for temporary reserves at RMB1.48-RMB1.52/kg (US$0.22), and that of soy at RMB3.74/kg (US$0.55), compared with RMB3.7/kg (US$0.54) during last year's stockpiling.

The government will give subsidies for corn purchases at RMB70/tonne (US$10.25) if purchase prices are higher than the market offer.

China purchased 5.25 million tonnes of soy and 30 million tonnes of corn for state reserve last year.