White goods sales pass 77m in subsidised scheme for farmers

Mainland farmers bought more than 77 million television sets, washing machines, refrigerators and air conditioners last year through the country's 'home appliances to the countryside' scheme.

Despite the stimulus policy, the home appliance industry expects a slowdown in sales growth this year because of higher costs, a stronger yuan and policy adjustments.

According to the Ministry of Commerce, sales proceeds from the subsidised scheme in rural areas reached 173.2 billion yuan (HK$203.2 billion) last year, about 1.7 times that of 2009. Refrigerators and television sets were the most popular products, reaping 56.7 billion yuan and 48.8 billion yuan, respectively.

Beijing launched the 'home appliances to the countryside' programme in December 2007 to fight the global economic crisis and boost domestic demand in rural areas. Farmers buying certain types of electrical appliances receive a subsidy of 13 per cent of the full price.

The programme was expanded nationwide in 2009 with more products, including motorcycles, computers and water heaters.

'The programme was a turning point for the rural market,' said Jiang Feng, the president of the China Household Electrical Appliances Association.