Govt's grain purchase price set to rise sharply

The government's farm procurement prices are set to see a hefty rise as policy makers try to mitigate the impact of the global economic crisis on rural residents.

The average minimum procurement price for all grain products will rise 13 percent from last year, Chen Xiwen, director of the office of the Central Leading Group on Rural Work, told China Daily yesterday.

That would generate more than 116 billion yuan ($17 billion) of cash income for the country's 700 million farmers; or each of the rural households would earn an extra 500 yuan, enough for a month's expenses.