Boost for farmers as rice price raised 21pc
The central government has decided to increase the price it pays farmers for rice by about 21 per cent as an incentive for farmers to keep growing the staple.
The minimum purchase price of early-season indica, the most widely cultivated subspecies of rice in China, is 1.4 yuan a kg this year, compared to 1.16 last year.
Quoting the National Development and Reform Commission, the China Daily said the stimulating measures were aimed at 'protecting farmers' enthusiasm for farming and increasing grain output'.
The commission said it and the Ministry of Agriculture would announce the protected prices of other rice subspecies soon.
China's grain output has fallen 5.8 per cent since 2002 and reached 430.65 million tonnes last year.
Output is expected to rise to 455 million tonnes this year, a year seen as important in the recovery of grain production and the attempt to avert a detrimental reverse in supply and demand.
The report said the government hoped the price increase would help lift incomes in rural areas.
Teams have been sent to main grain producing provinces to ensure an adequate supply of fertiliser and other production materials.
