China to buy more corn, soy to boost farmers
China, the world's largest soy buyer, will purchase oilseed and corn from the domestic market to boost farm incomes, the National Development and Reform Commission said.
The commission said the Chinese government will start the purchases from northeastern areas on December 1, 2009 and continue through April 30, 2010. A one-off subsidy of RMB160 (US$23) per tonne will also be offered to crushers to purchase local beans, it said.
The government bought more than 6 million tonnes of soy earlier this year to help boost local prices at a time when the global recession threatened to reduce farm incomes.
After approval from the state council, the work of purchasing grains from the northeastern regions will protect the interests of farmers and promote the steady development of grain production, according to the commission.
The purchases will be made in Inner Mongolia and the provinces of Liaoning, Jilin and Heilongjiang, it said the statement dated Nov. 13.
China relies mostly on imports to meet its soy needs, with consumption estimated at more than 54 million tonnes this year and domestic supply at 14.5 million tonnes, according to the US Department of Agriculture.
The government has maintained social stability a key policy aim in China and Beijing has bought commodities including corn and soy from farmers this year to help bolster rural incomes and lift grain output.
Imports in December may be more than 4 million tonnes with shipments in November expected to be about 3 million tonnes, the China National Grain & Oils Information Centre said Nov. 24.
A record 73.787 million bushels of US supplies were inspected for export in the week ended Nov. 19, with China accounting for 78 percent of the total, the US Department of Agriculture said.
China's soy imports fell for a fourth month in October to 2.52 million tonnes, according to the customs office. Imports have dropped since reaching a record 4.71 million tonnes in June.
US$1 = RMB6.82 (Nov 27)
