According to the Ministry of Agriculture, the gap between urban residents’ per capita income and farmers’ has kept widening over the last five years. The gap was 3.33: 1 or RMB9,646/person on average in 2007 and 3.36: 1 or RMB10,000/person in 2008.
The widening income gap hinders expansion of domestic demand and sustainable economic development. As protective procurement price is an effective policy of income allocation, it can be used to raise farmers’ income. Therefore, in the draft document called State Council’s Proposal of Promoting Agricultural Development And Ensuring Farmers’ Income Increase in 2009, the government proposes to raise grain protective procurement price and increase farm product reserve.
BOABC predicts that the government may offer more support to grain price in 2009 against the backdrop of global financial crisis. With regard to the procured grains, the government is expected to promote grain deep-processing to enhance grains’ added value. The government is expected to promote the extension of mechanized grain production, biotechnology and information technology to promote agricultural modernization.
|
