November 16, 2006

China buys 41.3 million tonnes local wheat to support farmers

China's government bought 41.25 million metric tonnes of domestic wheat in a minimum purchase price programme this year, China Economic Times reported Thursday, citing data from China's State Grain Administration.

In the hope of protecting farmers' incomes, China's central government designated state-owned warehouses in six major wheat growing provinces to buy domestic wheat at RMB1,380-RMB1,440/tonne from June 1 to Sept. 30.

Purchases by state-owned warehouses during the period accounted for more than 60 percent of this year's new harvest, local traders said.

In a similar programme, the government bought 3.75 million tonnes of early long grain rice harvested in four major rice producing provinces at a minimum purchase price of RMB1,400/tonne, the report added.

China's wheat production would reach 102.97 million tonnes in 2006, while rice output is expected to hit 180.74 million tonnes, according to the China National Grains and Oils Information Centre, under the State Grain Administration.