Economy

China aims to boost grain production

(Xinhua)
Updated: 2011-02-10 14:00

BEIJING - China's State Council, the nation's cabinet, pledged Wednesday to step up efforts to boost grain production as relentless droughts continue to wreak havoc in north China's wheat growing regions.

To encourage farmers to plant more and increase production, China will increase minimum purchase prices for grain produced in 2011 by up to 21.9 percent from that in 2010, according to a statement released after a State Council executive meeting presided over by Premier Wen Jiabao.

Related readings:  Food prices rise on weather, improved living standards  Adverse weather may disrupt?price control  Chinese govt allocates 98.6b yuan to support farmers  China's grain output gains 2.9% to 546.41m tons in 2010

The purchasing prices for japonica rice will rise 21.9 percent to 128 yuan ($19.4) per 50 kilograms this year, while prices for early and middle-late indica rice will increase 9.7 percent and 10.3 percent to 102 yuan and 107 yuan per 50 kilograms respectively.

Further, the central government will allocate 1.2 billion yuan to subsidize the purchase of anti-drought technologies for winter wheat-growing regions.

According to the statement, the government has already allocated 4 billion yuan for rural water conservation projects and another 2 billion yuan will be allocated for farm irrigation systems and safe drinking water projects.

The government had also pledged to fund 2,000 professional groups in ?insect-prevention in the worst-hit counties, the statement said.

China's main wheat-growing regions, including Shandong, Henan, Hebei, Anhui, Shanxi, Shaanxi, Gansu and Jiangsu provinces, have been plagued by ongoing droughts since last year.