Beijing | Reuters — China will step up buying of domestic soybeans by state reserves to encourage farmers to keep planting the crop, the agriculture ministry said on Thursday, as Beijing continues to push for greater self-sufficiency in oilseed.
China started to increase soybean planting a year ago amid worries about its heavy reliance on imports of protein-rich beans to feed its huge herd of livestock.
But after boosting planting by 22 per cent last year, farmers struggled to sell their crop, which is priced higher than genetically modified imported soybeans and predominantly sold for food use.
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China will guide its state stockpiler to plan new purchases of domestically produced soybeans in the producing regions of Heilongjiang province and Inner Mongolia, the ministry of agriculture and rural affairs said in a statement.
The stockpiler should “increase the intensity of purchase and storage, release positive signals, and make use of the role of market guidance,” it said.
State-owned companies such as COFCO Group should also prioritize the procurement, processing and use of domestic soybeans, while clear soybean production targets should be set for local governments.
China will also increase subsidies for soybean and corn producers and guide regions in its northeastern breadbasket to stabilize production.
Other policies include to increasing incentives for major grain-producing counties, focussing on raising yields, and to develop co-ordination between production and sales.
The measures are aimed at “sending a clear signal” to stabilize soybean production this year, and ensuring the reasonable income of soybean farmers, the statement said.
— Reporting for Reuters by Siyi Liu and Dominique Patton.
