China increases government price for crops
China has increased the minimum price it will pay farmers for rice and wheat by about 10 percent to encourage grain production and curb inflation, the country’s top planning body said today on its Website.
The government raised the purchase price to encourage the country’s farmers and make progress in development of grain production, the National Development and Reform Commission said.
The country’s inflation rate accelerated at an astonishing pace to hit a near 12-year high to 8.7 percent in February.
Food prices surged 23.3 percent year-on-year last month. Within the category, meat and poultry prices soared 45.3 percent last month. Egg costs grew by six percent and grain costs were also up six percent.
The minimum government price for rice has increased to 1.45 yuan (US$0.21) per kilogram from 1.4 yuan and the price for wheat rose to 1.44 yuan from 1.38 yuan. The price varies a little between different grades of the grain.
It was the second time that the government has boosted minimum purchase prices this year. The previous rise this year, on February 8, lifted the minimum price for rice 1.5 to 1.58 yuan, and wheat 1.4 to 1.5 yuan.
The commission also said the minimum price system would be expanded to cover the Liaoning Province, which would become the third province after Heilongjiang and Jilin provinces.
China began setting minimum purchase prices in 2004 to encourage production.
Tags: farmer, grain, wheat