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China to reform mechanism on food subsidies

English.news.cn | Updated: 2014-01-23 15:43

The Information Office of China's State Council released details on the country's latest push to reform its agricultural policies. Officials stressed that agriculture is still the foundation of the country's economy. China will reform the current mechanism for food subsidies.

Currently, the government compensates farmers when grain prices fail to reach the minimum price set by the government. From this year, changes will be implemented in some test areas, where the government will set grain prices based more on the market.

The government will still compensate farmers if the actual price is lower than the one it set.

And those living under the poverty line in cities will receive subsidies to compensate for higher grain prices than what the government set.

China also plans to revitalize its farmland that has been exhausted by excessive use of fertilizers and heavy pollution. They will also try to ensure that there is plentiful grain supplies across the country.

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