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Nation renews vow on grain security

(China Daily)
Updated: 2008-11-14 08:23

The government promulgated its first long-term grain security plan on Thursday, renewing its pledge to ensure 95 percent self-sufficiency during the next 12 years.

A woman harvests rice in Gaopo township in Huaxi district of Guiyang, capital of Guizhou province, on October 18, 2008. [Asianewsphoto]

The renewal pledge comes at a time when the global grain market is falling.

The plan was approved by the State Council in July, and has not undergone any major revisions despite the deepening global financial crisis, Zhang Xiaoqiang, deputy minister of the National Development and Reform Commission (NDRC), told a press briefing.

"That's because, according to our analysis, the global financial crisis and economic downturn will have no major impact on next year's grain production in China," he said.

Nonetheless, Zhang said the decline in the area of arable land, water shortages and climate change have hurt grain production. "Grain supply and demand in China will see a tight balance for a long period."

The plan targets grain production of at least 500 billion kg in 2010 and more than 540 billion kg in 2020. The grain output was 501.6 billion kg last year.

It calls for "the most stringent farmland protection system" to safeguard the 1.8 billion mu (120 million hectares), the minimum arable land needed to ensure food safety, till 2020. The country now has 1.826 billion mu of arable land, with and average annual decrease of 11 million mu because of the fast pace of industrialization and urbanization.

The arable land area increased after China scrapped agriculture taxes, raised subsidies and introduced minimum grain purchase prices to stimulate production.

The minimum purchase prices for a number of agricultural products will be raised next year, he said.

The government has already said it would raise the wheat price paid to peasants by 13-15.3 percent in 2009. The minimum purchasing price for rice, too, will "rise by a large margin".

"This will allow China's food prices to remain at a relatively rational level, which will help boost grain output, promote sustainable development and raise farmers' incomes," Zhang said.

The country is expected to increase direct subsidies for peasants in 2009, too.