Economy

China to spend more money for subsidies to boost agriculture

(Xinhua)
Updated: 2011-04-07 14:49

BEIJING - China will inject an additional 18.01 billion yuan ($2.8 billion) this year into subsidies aimed at boosting agricultural production, the Ministry of Finance said Thursday.

A total of 140.6 billion yuan, including the newly allocated amount, will be used to increase farm production through subsidies in 2011, up 14.7 percent from a year earlier, the ministry said on its website.

Related readings:  Support agriculture to 'curb inflation'  China 'intensive agriculture' vs US  Financial leasers thrive in agriculture  Energy giants to give agriculture high priority

The amount includes 15.1 billion yuan of direct subsidies to grain growers, 86 billion yuan of general subsidies for purchasing agricultural supplies, 22 billion yuan for growing superior crop varieties and 17.5 billion yuan for purchasing agricultural machinery, it said.

Under the subsidy program, farmers growing superior grain varieties such as rice, wheat, corn, cotton, soybean and winter rape will receive subsidies from 10 to 15 yuan per mu (0.07 of a hectare).

Also, it will offer farmers discounts of around 30 percent on agricultural machinery purchased, with the maximum subsidy ranging from 50,000 to 200,000 yuan per item.

The central government has decided to allocate a total of 988.5 billion yuan in general assistance to agriculture, farmers and rural areas for 2011, a year-on-year increase of 15.2 percent, it said.