The Government announced it will keep the 2020 minimum support price for wheat at CNY 2 240 (USD 317) per tonne, the same as in the past year (FPMA Food Policies) following two consecutive years of price cuts. The Government sets the purchase price after considering production costs, market supply and demand, as well as prices in both domestic and international markets. Under the scheme, the Government buys wheat from farmers at the State-set price when domestic prices fall below it in an effort to preserve rural incomes and keep the domestic market stable. The volume of the 2020 annual wheat procurement is capped at 37 million tonnes and purchases would start from May, when harvesting of the main “winter” crop begins.