The National Development and Reform Commission set the minimum procurement prices for 2018 paddy crops at levels below those in 2017 (FPMA Food Policies).The price for early Indica paddy was lowered to CNY 2 400 (USD 381) per tonne, nearly 8 percent lower than in 2017. The procurement price for late/intermediate Indica was set at CNY 2 520 (USD 400) per tonne and for Japonica at CNY 2 600 (USD 413) per tonne, 7 and 13 percent lower than in 2017, respectively. Procurement prices were reduced for the second consecutive year to tackle the large volume of stocks. The Government sets the purchase prices in order to protect farmers’ interests after considering production costs, market supply and demand, as well as prices in both domestic and international markets, among other factors.