December 24, 2007

 

China to focus on national grain security in 2008

 

 

Grain production would be given a prominent slot on China's agenda in 2008, increasing subsidies to farmers to up the yield per unit of farmland, thus boosting total grain output.

 

The message was delivered at the annual central rural work conference concluded on Sunday. China outlined the top priorities of the country's rural work next year.

 

Preventing a short supply in farm produce and cushioning extreme ups and downs of prices would be a top priority, according to an official statement after the conference.

 

Significant rises in food prices such as grain and pork this year should have raised the income of farmers. However, it also lifted the nation's consumer price index (CPI) to an 11-year high of 6.9 percent in November, way above the government's three percent target.

 

Officials said that preventing current price increases from becoming evident inflation would be a primary task of the macroeconomic control in 2008 at the Central Economic Work Conference. 

 

China produced more than 500 million tonnes of grain in 2007, the fourth consecutive year of yield growth. But production still fell short of demand.

 

Local governments were tasked to carry out subsidies for farmers "to the full" and generate ways to augment grain production.

 

Analysts said farmers could expect more direct subsidies for grain production

next year as it would enhance the enthusiasm of farmers to cultivating grain.

 

More efforts to ensure the production of meat, eggs, milk, vegetables and fruits, which were directly related to the livelihood of people, will also be channeled.

 

Furthermore, food safety was emphasized by calling on local governments to strengthen animal-borne disease control and improve supervision over quality of farm produce.

 

Investment into the rural areas, such as irrigation facilities, protection of farmland and subsidies for farmers, would be raised, the conference concluded.