August 7, 2003



Bad Weather Conditions Expected To Cause 4% Fall In Summer Grain Output, Chinese Government Increase Drought Subsidies

Drought has been declared in 14 provinces across China, including the major soy bean-growing area of Heilongjiang and the top corn-growing region of Jilin, both in the country's parched northeast.


To ease the plight of farmers hit by the extended dry spell, China's Ministry of Finance has approved an additional RMB 170 million in drought subsidies.


The new allocation will add to the RMB 315 million in subsidies for drought relief already approved by China's government since the beginning of the year, the official Xinhua News Agency reported Wednesday.


Due to the unfavorable weather conditions, China's Ministry of Agriculture had forecasted a 4% year-on-year fall in summer grain output this year.