China to Raise Grain Purchase Prices, Support Breeding Sector

BEIJING — Reuters on Friday reported that China's government announced plans to raise its minimum purchase price for wheat and rice and expand corn planting areas this year, reiterating earlier plans to boost grain output after prices soared last year.

The moves, reported to parliament by Premier Li Keqiang and the state economic planning agency, come after the COVID-19 pandemic fueled food insecurity fears in the world’s most populous country.

To support food production, China buys wheat and rice from farmers at a minimum price when the market price drops below that level.

The government cut support prices in 2018 after stocks of the grains ballooned.

However, this year it lifted the minimum price for wheat for the first time since 2014 amid a renewed focus on food security.

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