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China's grain purchase scheme helps stablize domestic prices

(Xinhua)
Updated: 2010-01-12 10:27
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China's grain enterprises purchased 287.6 million tons of grain from peasants in 2009, effectively stabilizing domestic grain prices and protecting farmers' interests, said head of the State Administration of Grain Nie Zhenbang Monday.

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China had raised minimum purchase prices for wheat and rice again in 2009, by 13 to 17 percent, to add income for farmers, said Nie at a national meeting in Beijing.

The measure of minimum purchase prices increased peasants' income by about 40 billion yuan ($5.86 billion) last year, he said.

Administration figures showed State-run grain enterprises bought 163.2 million tons of grain last year.

The Administration has been promoting reforms among State-run grain enterprises and reported 18,163 State-run grain enterprises by the end of 2009, down 65 percent from 1998.