By mid Jan., the government had issued four batches of grain procurement plans totaling 58.5 million MT, accounting for 17.92% of fall crop production. The procurement consisted of 30 million MT of corn, 22.5 million MT of paddy (early rice not included) and 6 million MT of soybeans, accounting for 19.23%, 14.6% and 36.37% of the nation’s total production in 2008 respectively. Earlier in 2008, the government procured 42 million MT wheat at the protective price and 6.3 million MT early rice.

China’s grain demand and supply is basically balanced with a slight surplus. Against the backdrop of bumper grain harvest for five running years, the government’s massive grain procurement can prevent excessive grain price decline and protect farmers’ interests. The state procurement helps stabilize grain price and grain production, an important measure to ensure grain safety.

The state grain procurement plays a key role in increasing farmers’ income and expanding domestic demand. For the procurement of 58.5 million MT fall crops, the government spent more than RMB115 billion, which helped invigorating the rural economy. The grain procurement also acts to alleviate poverty in the rural areas. When young farmers leave villages to seek jobs in the urban areas, old farmers basically live on farming.

List

News Briefs 1

State Grain Procurement Conducive to Stable Production 1

Wheat Crop Plagued by Drought And Diseases 3

Progress of Grain Procurement 3

Reduction of Corn Exports Conducive to Domestic Supply 4

Weather & Crop Conditions 5

Crop Conditions 6

Weather Forecast (January 16, 2009?January 22, 2009) 7

Price Trends 7