At the recently held national people’s congress, the government put forward the following measures to promote agricultural production:
First, the government plans to invest RMB716.1 billion in agriculture and rural infrastructure construction this year, an increase of RMB120.6 billion over last year.
Second, the government is to raise wheat and paddy protective procurement price by RMB0.11/500g and RMB0.13/500g this year over last year. Temporary reserve-oriented procurement may be launched as a measure to regulate grain market.
Third, the government is to provide RMB123 billion subsidy for farm production this year, RMB20 billion more than last year. Besides, the government will provide RMB13 billion to subsidize farmers’ purchase of farm machines, RMB9 billion more than last year.
BOABC believes that these measures can ensure an increase in grain production and farmers’ income this year, but the investment is not enough to change the backward agriculture facilities. The protective procurement price is slightly below the current market price, having little effect on the growth of farmers’ income. The bulk of the fine seed subsidy goes to seed suppliers, but shoddy seeds are still common.
