China will give one-off subsidy to cushion farmers from the sharp price increases of farming supplies, the State Council’s executive meeting chaired by Premier Li Keqiang decided on June 18.
Agriculture is a sector for maintaining public confidence and ensuring China’s stability. The CPC Central Committee and the State Council place high importance on grain production and food security. The price surge of commodities this year has notably driven up the price of agricultural supplies like fertilizers and diesel.
To keep farmers motivated, the meeting decided that based on China’s realities as a developing country, the central government will earmark 20 billion yuan in funds for granting one-off subsidy to crop-growing farmers in light of the extra costs relating to farming supplies for major grain crops, to keep their incomes stable. Measures will also be taken to better regulate the agricultural supplies market and guide enterprises to beef up supply of the domestic market.
“Now is a crucial time for summer harvest and planting, which forms the bulk of the country’s grain output. The subsidy should be issued as soon as possible, to keep up with the summer farming schedule,” Premier Li said.
