September 29, 2011

China has raised the minimum purchase price for wheat by at least 7.4% for 2012 from this year, the National Development and Reform Commission said Wednesday (Sep 28), before farmers begin wheat planting next month.

The minimum purchase price had been set at RMB2,040 (US$319) per tonne, up from RMB1,860-1,900 (US$290-297) per tonne for 2011, the commission said.

"In order to protect farmer incentives for grain planting and to enhance development of grain production, the government will continue to adopt a minimum purchasing price policy in the main wheat producing areas," the commission said.

China will likely harvest a total of 116.79 million tonnes of wheat this year, up 1.4% from last year, despite earlier concerns over drought damage to winter crops, according to official think-tank the China National Grain and Oils Information Centre (CNGOIC).