China raises rice purchase prices

February 2nd, 2012 - 9:20 pm ICT by IANS  

Beijing, Feb 2 (IANS) China Thursday announced plans to raise the minimum purchase prices for rice in 2012 to encourage farmers to grow more grains.

It is the fifth consecutive yearly price increase by the country’s top economic planning agency aimed at boosting grain production and farmers’ income.

the National Development and Reform Commission raised the price for mid-and-late indica rice to 125 yuan ($19.8) per 50 kg, up 18 yuan from the 2011 price.

In addition, the price for japonica rice will be increased to 140 yuan ($22.18) per 50 kg, up 12 yuan from the 2011 price, Global Times reported.

Rice and wheat are the two major grain crops in China. The domestic grain output rose to 571.21 million tonnes last year, marking the eighth consecutive yearly growth.

The country will also offer more subsidies for major grain-producing areas, farmers and farming cooperatives, the agency said.

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