China raises funding to boost grain security

Updated: 2011-08-26 09:32


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BEIJING-- The Chinese Ministry of Finance (MOF) said Thursday that it has added 4.4 billion yuan ($688 million) in subsidies to the Grain Risk Fund to boost the country's grain security.

With the additional subsidies, the capital of the Grain Risk Fund has reached 38.2 billion yuan, including 27.7 billion yuan, or 72.5 percent, earmarked for the 13 major grain-producing regions. All of the money for the 13 regions has been appropriated by the central government.

The MOF said it believes the funding will ensure necessary spending by local governments to subsidize grain production and the establishment of cereal and cooking oil reserves.

"The funding will increase local governments' abilities to encourage farmers to grow more, stabilizing the market and guaranteeing the grain and oil supplies," said MOF.

Established in 1994, the Grain Risk Fund is used to hand direct subsidies to grain growers as well as general subsidies for purchasing agricultural supplies and machinery.

Last year, China's grain output increased 2.9 percent year-on-year to 546.41 million metric tons. But the country's summer grain output fell 0.3 percent year-on-year to 123.1 million metric tons.

Meanwhile, this year, China's summer grain output rose 2.5 percent year-on-year to 126.27 million metric tons due to expanded harvesting areas and higher yields, according to the National Bureau of Statistics.