Economy

Chinese govt allocates 98.6b yuan to support farmers

(Xinhua)
Updated: 2011-01-21 13:16

BEIJING -- The Chinese government has allocated 98.6 billion yuan ($15 billion) for farmers nationwide in a bid to maintain steady grain output and boost farmers' incomes.

The bulk of the funding -- 83.5 billion yuan -- is to be used in the purchasing of farm machinery such as equipment to plant seeds and reapers.

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The remainder, 15.1 billion yuan, would subsidize farmers in growing crops such as rice, corn, and cotton, according to a statement released Thursday by the Ministry of Finance.

The move came as most northern Chinese regions, plagued by a months-long drought, will continue to see cold and dry weather in the next 10 days, the National Meteorological Center forecast Wednesday.

The drought has affected some 4 million hectares of crops and left about 2.2 million people short of drinking water, according to the State Flood Control and Drought Relief Headquarters on Monday.

The ministry called upon finance departments at all levels to make detailed subsidy plans for farmers as soon as possible in order to ensure that farmers receive this funding before spring plowing.

In addition, the ministry urged local governments to make public detailed allowances for every farmer for public supervision, vowing to strictly prevent and punish embezzlement.

Also on Thursday, figures from the State Administration of Grain revealed that the total amount of grain purchased by various grain enterprises in the country last year surpassed 300 billion kilograms, for the first time.

Among a total of 301.1 billion kilograms purchased, some 30.65 billion kilograms of grain and oil were purchased for the purpose of holding the market price, which effectively increased production and farmers' incomes, SAG head Nie Zhenbang said at a meeting.

Nie urged related departments to carefully examine the new situation of grain distribution in the next five years and continue purchases to ensure farmers' benefits and stabilize the market.