July 2, 2009--This year's summer grain output is expected to exceed 122.5 billion kilograms, marking the first consecutive 6-year growth in grain output since the founding of the PRC according to a forecast by the Ministry of Agriculture.
By June 25, various food enterprises had purchased 20.68 million tons of wheat, newly-harvested in the 8 major wheat production provinces of Hebei, Jiangsu, Anhui, Shandong, Henan, Hubei, Sichuan and Shaanxi. Currently the market price of wheat continues to be higher than the minimum purchase price.
The state has substantially raised the minimum purchase price of wheat this year, and at the same time increased some subsidies for grain growers, such as subsidies for general agricultural supplies, fine produce, machinery and tools. Farmers' income is expected to increase at least 10 billion yuan thanks to these measures.
Reporters learned that when new grain initially entered the market, market prices in some regions were lower than the minimum purchase price stipulated by the state.
By June 25, China's Agricultural Development Bank had cumulatively issued 45 billion yuan of loans to help purchase summer grain and oil and to ensure farmers' interest. China Grain Reserves Corporation has entrusted grain purchasing and storage warehouses by purchasing 16.55 million tons of wheat in Hebei, Jiangsu, Anhui, Shandong, Henan and Hubei Provinces at minimum purchase price, accounting for 88 percent of gross grain purchases by grain enterprises.
Thanks to this year's rise in the minimum purchase price, farmers are generally more positive about selling their grain. This year, wheat was purchased for an average 1.804 yuan per kilogram in Henan, an increase of over 10 percent year-on-year, according to statistics from the Henan Branch of China Grain Reserves Corporation.
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