China drastically increased its budget on Tuesday to store grains and edible oils this year and intensified support and policies to boost agricultural production, doubling down on improving food security.
The world's largest buyer of grains and oilseeds wants to reduce its heavy dependence on imports, which reach more than 100 million tons per year, mainly from the United States and Brazil. China's total agricultural imports amounted to 234 billion dollars in 2023.
“These efforts will help secure the income of grain producers and motivate key grain-producing areas to maintain focus on grain production and further explore their potential to achieve higher yields,” the Chinese Ministry of Finance said in a statement. report released at the start of the annual meeting of China's parliament.
China raises food security budget by 8.1%
China will spend 140.63 billion yuan ($19.54 billion) on stocks of grains, edible oils and "other materials" this year, an increase of 8.1% from the previous year, according to the report.
“Budget increase shows Beijing’s concern about the supply of food and other raw materials,” said Even Pay, an analyst at Trivium China.
“China seeks economic and food security by maintaining or increasing reserves, but this implies greater intervention in the markets,” he said.
On Tuesday, China increased agricultural subsidies by 18.7%, totaling 54.5 billion yuan ($7.57 billion) in insurance premiums. The Ministry of Finance will raise the minimum price of wheat and expand national agricultural insurance for rice, wheat and corn.
Investing in modernization to ensure self-sufficient food supply
"With China's vast population, it is vital to ensure domestic food security through a comprehensive agricultural strategy," said Premier Li Qiang. Additionally, Li said China will expand oilseed production and keep livestock and fisheries stable.
On the other hand, China plans to produce more than 650 million tons of grains in 2024, with steady growth in production capacity. The National Development and Reform Commission predicts an increase of 50 million tons in grain production, showing steady progress.
Furthermore, accelerating soybean cultivation, building seed centers and developing varieties with high oil content and yield are declared priorities. “We will transform agriculture into an important modern sector,” the report said.
As the world's second-largest corn producer, China is looking to increase production after a record harvest of 288.84 million tons the previous year.
Source: Emily Chow and Mei Mei Chu | Notícias Agrícolas
