October 17, 2008

China will provide RMB 180 million (US$26.3 million) to subsidise dairy farmers in Inner Mongolia who were negatively impacted by the tainted milk scandal that broke out in mid-September, according to a senior official on Wednesday (October 15, 2008).

The scandal led to farmers disposing of their raw milk, causing them to incur heavy losses.

Among the subsidy, RMB 100 million (US$14.6 million) will be provided by the central government, while the remaining sum would come from the regional government, said Guo Qijun, vice chairman of the Inner Mongolia Autonomous Regional People's Government.

Last week, the central government allocated RMB 300 million (US$44 million) to help dairy farmers nationwide.

The General Administration of Quality Supervision, Inspection and Quarantine on Wednesday also published a national standard for instant melamine testing on raw milk. The Administration also said latest tests found that Chinese liquid dairy products met the new temporary restrictions on melamine.