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China adds 292 million tons to grain reserve in 2008

(Xinhua)
Updated: 2009-01-12 22:08

China's grain enterprises purchased 291.8 million tons of grain from farmers last year, effectively stabilizing domestic grain prices and easing price pressures on farmers, State Administration of Grain administrator Nie Zhenbang said Monday.

The government had guaranteed sufficient grain supplies at stable prices for home markets, including the disaster-hit regions and Olympics host cities, despite fluctuating world prices and natural disasters, such as the severe winter weather and the May 12 earthquake, said Nie.

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Administration figures showed state-run grain enterprises bought 170.4 million tons of grain last year, including 42.05 million tons of wheat, 13.1 million tons more than 2007.

They also purchased 11.8 million tons of rice and 8.5 million tons of corn. These measures eased price pressure on farmers and protected their interests.

Nie said state-owned grain enterprises played a major role in ensuring supply security, raising purchase prices and boosting grain prices. Other entities were also encouraged to purchase from farmers to increase liquidity of grain and help buoy prices.

These measures increased farmers' incomes nationwide by more than 50 billion yuan ($7.31 billion).

In 2009, the government would implement a package of measures to boost farmer confidence in the grain market, including raising purchase prices, offering subsidies for the purchase of farming tools and seeds, increasing state reserves and encouraging moderate exports, said Song Hongyuan, director of the Ministry of Agriculture's Rural Economic Research Center.