December 30, 2010

China to invest US$30 billion on grain harvest projects

As part of an effort to preserve the strength of its grain harvest, China will invest CNY200 billion (US$30 billion) next year on infrastructure projects, particularly those enhancing the nation's irrigation system, according to media reports.

The nation is devoting special attention to projects that minimize and prevent damage from drought and floods while also eyeing an upgrade of the water supply infrastructure in regions where agricultural production is high, according to media reports. Next year's allotment is 10% higher than this year's.

"Over the next 10 years, it is hoped that China can double its current average annual investment in water conservation construction," said water resources minister, Chen Lei.

China's central concern is the production of grain, according to the director of the rural work leading group for the Chinese government.

"We have to accelerate the construction of water conservation facilities as one of the key infrastructures the country needs to secure increasing grain production," Chen said. "We must address issues arising from the country's rapid urbanisation, which has consumed land that used to be used for farming."