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China to raise grain reserves to protect farmers' income

(Xinhua)
Updated: 2008-12-04 09:11

BEIJING -- China's State Administration of Grain on Wednesday said it will buy another 14 million tons of grain to expand temporary state reserves.

The purchase is aimed at stabilizing grain prices and protect farmers' interests, the agency said. It includes 7.5 million tons of rice, 5 million tons of corn and 1.5 million tons of soybeans.

The agency has earlier announced plans to buy 16.5 million tons of grains as state reserves.

China expects a record-high grain output of 525 million tons this year, Du Ying, deputy director of the National Development and Reform Commission (NDRC), said on Monday.

Among other measures to raise farmers' income and motivate them to increase production, the NDRC, or the top economic planning agency, announced in October that it would raise the minimum purchasing price for wheat and rice next year.