Minister of Agriculture Du Qinglin said Wednesday the country's
early rice output is expected to grow by more than 13 percent
year-on-year, or 4 million tons, after seven consecutive years of
declines.
Addressing a national meeting on agriculture, the minister
attributed good early rice yields to intervention from central
authorities with economic incentives such as higher grain
prices.
The area cultivated with early rice is expected to increase by
533,000 hectares over last year, noted the minister.
That good news followed a projected good wheat harvest, which Du
estimates will be 2.5 million tons larger than last year for a rise
of 3 percent. Wheat output has been declining for the past four
years.
"Wheat makes up 90 percent of summer grain crops. A good wheat
harvest means a good harvest of summer grain," Du said.
China's total area under grain cultivation is estimated to be up
266,000 hectares from last year, Du said. That represents major
progress in reversing extended declines in grain production. It
should allow the country to reach its grain production target if no
widespread natural adversities occur in the coming months.
Since last year, declining grain output, rising grain prices and
concerns over food security have been a focus of Chinese
leaders.
The per capita shares of water and agricultural land resources
in China are far below the world average, and agricultural land has
been dwindling as a result of urbanization and industrial
development.
Earlier this year, China set its annual grain output target at
455 million tons and total area sown with grain crops at more than
100 million hectares.
Grain output has declined for five years running. It fell to 431
million tons in 2003, far below the warning line of 450 million
tons.
Affected by the international grain market and the decline in
domestic grain output, the prices of major cereals like rice and
wheat have risen by a substantial margin since last October.
To turn the tide, the central government implemented such
policies as direct subsidies and tax reductions for grain growers
early this year.
In central China's Henan
Province, where one-tenth of the nation's wheat is grown,
output is expected to reach 24.3 million tons this summer,
surpassing by 303,000 tons its 1997 record.
Like other major grain-producing provincial areas, Henan
earmarked 1.2 billion yuan (US$140 million) in direct subsidies:
farmers can get 198 yuan (US$24) for each hectare of grain they
grow.
Henan allocated another 15 million yuan (US$1.8 million) to
subsidize the purchase of top-quality seed and agricultural
equipment and tools.
The agricultural tax was cut by 3 percent.
(Xinhua News Agency July 8, 2004)