December 28, 2007

China to expand subsidy for soy to boost oil crops

China plans to increase the planting acreage of oil crops by expanding the subsidy coverage for improved strains of soy from 0.67 million hectares to 2.67 million hectares.

The government will focus its efforts in China's Inner Mongolia and three provinces in northeast, according to Lu Guimin, vice-director of Agriculture Department under the Chinese Ministry of Finance.

Subsidy will also be given to rapeseed planting in the Yangtze River Delta, a major rapeseed-producing area in China, Lu said.

China will gradually expand agricultural insurance to oil crops as part of efforts to enhance the country's self-sufficiency ratio of oilseed.

In addition, agricultural insurance will be expanded to cover oil crop planting on a trial basis. Science and technology will also be strengthened to support oil crop planting in the country.

The government considers such measures to boost domestic oilseed production, remedy supply shortage, and stabilize the oilseed market.