China to increase state corn purchase price

Chinese Premier Li Keqiang revealed this recently saying, “We should properly raise corn minimum purchase price to stabilise production and supply of major commodities.”

Wet weather has delayed corn planting in China’s north-eastern parts and a drought in the north-west and south-west has threatened the country’s corn production this year.

Li added, “Maintaining the healthy development of the agricultural sector is an important safeguard for stabilising economic growth and controlling inflation.”

He also said that the government will boost pork stockpile by increasing both state and commercial stocks, among other measures, to help stabilise pork prices and encourage breeders to keep breeding.

Beijing extended its corn stockpiling programme until the end of May, giving farmers more time to sell their crop after an outbreak of bird flu that has slashed demand for the feed grain.

Domestic price of pork, the staple meat in the country, fell for the 11th week last week in a row, said the commerce ministry. The fall could trigger slaughtering of breeding sows and reduce hog production in the world’s largest consuming country.