On 27 October, the Government announced a cut to the purchasing price of wheat, the first reduction since 2007. The price for the 2018 crop was reduced by 2.5 percent to CNY 2 300 yuan (USD 346) per tonne. The Government buys wheat from farmers at the minimum price when the market price drops below that level. The measure aims to limit stockpiling and bring domestic prices more in line with the international market. In the key producing area of Henan, the price of wheat is currently reported at CNY 2 520 (USD 379) per tonne, well above the level in the international market.