China in RMB100bn subsidy to boost grain output
China plans to boost its annual grain output capacity to more than 550 million tons by 2020, an increase of 50 million tons from 2007, according to a plan approved by the state council yesterday.
Jilin, Heilongjiang and Henan Provinces have already been granted subsidies by Beijing.
In 2006 Jilin Province announced it would increase its grain output by 5 million tones before 2012 but had difficulty raising the RMB26 billion to support the plan. In July 2008, the state council approved the plan using a combination of national, provincial and private funding.
According to an unnamed official quoted in 21st Century Business Herald, national subsidies - part of the RMB100bn total - would make up one third (RMB10bn) of funding for the scheme.
According to analysts the total central government subsidy to increase grain output by the 50 million tons from 2008 to 2020 is an estimated RMB100 billion.
While many of China’s provinces have submitted proposals to gain a prt of this for extra grain production, the three provinces approved have have already taken 60 percent of the total budget.
Agriculture shares advanced 2 percent on average. Heilongjiang Agriculture Company Limited（SH:600598）advanced 4.12 percent，Yuan Longping High-Tech Agriculture Co.,（SZ:000998）gained 2.24 percent.
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