Area
China (Mainland)
Commodity Group
Oilseeds, oils and meals
Commodity
Soybeans
Date
01/10/2014
Policy Category
Production
Policy Instrument
Support prices
Description
Set official target price for 2014/15 campaign.
Notes
Reportedly, between May (when the government began this years auctions from state reserves) and early September 2014, more than 5 million tonnes of soybeans have been offered for sale, with only 2.2 million tonnes actually sold. Meanwhile, starting in the current season, the state procurement system for soybeans will be replaced with direct subsidy payments. Instead of selling to the government, farmers will sell their beans in the open market, and whenever market prices fall below a set target prices, the government will pay the difference based on the farmers planting area and on volumes sold to crushers. For the 2014/15 campaign, the official target price has been set at Yuan 4 800 per tonne (USD 784). For comparison, last season, the official purchase price had been fixed at Yuan 4 600 per tonne (USD 752). Reportedly, market prices will be regularly monitored by public officials in the countrys main soybean growing provinces.
