Trade and markets
 

Detail

Area
China (Mainland)
Commodity Group
Oilseeds, oils and meals
Commodity
Soybean, maize, wheat
Date
01/11/2017
Policy Category
Production
Policy Instrument
Production support
Description
Adjusted farmer support payments in Heilongjiang Province, with the objective of curbing maize and encouraging soybean production, while making the country’s grain reserve system more flexible. Also announced plans to subsidize grain transportation and storage facilities.
Notes
In Heilongjiang Province, support payments provided to maize growers have been lowered to CNY 133.46 per mu (USD 303 per ha), down 13 percent compared to last year’s level. The measure reflects efforts to curb national maize production and eventually lower domestic stocks – while encouraging farmers to plant alternative crops, notably soybeans. At the same time, for soybeans, the targe-price subsidy that was in place for the last three seasons has been replaced by an area-based grower subsidy amounting to CNY 173.46 per mu (USD 393 per ha). Meanwhile, the countrywide minimum purchase price for wheat for 2018 was set at CNY 2 300 per tonne (USD 348), 2.5 percent lower than this year and the first cut in over a decade. The latter change is part of Government efforts to bring domestic wheat prices more in line with both the international market and local production costs, while increasing flexibility of the country’s grain reserve system. Furthermore, the Government plans to subsidize grain transportation and storage facilities. Under this policy, projects designed to build or upgrade grain transportation or storage facilities along main railways and ports will be subsidized in a bid to improve market efficiency and curb distribution costs.