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The Ministry of Finance said on Friday the government will subsidize insurance payments for pig farmers to protect the industry from collapsing in the event of disease outbreaks, and to stabilize rising pork prices.

The ministry will also spend 470 million yuan (US$61.7 million) to subsidize people with low incomes and 280 million yuan for college students from poor families to cushion the impact of hiking pork prices, Zhu Zhigang, vice-minister of finance, said.

The pig raising insurance and subsidy plans are expected to start at end of this month.

A total of 6.5 billion yuan (US$853 million) would be needed to ensure the implementation of those measures this year, with 3.8 billion yuan expected to come from to the central government's coffers, Zhu said.

The measures were announced in a circular posted on the ministry's website on Friday.

Pork prices were 29.3 percent higher in April, year-on-year. Prices continued to rise in May before edging down in the first 10 days of June.

The State will also give farmers 50 yuan (US$6.60) a year for each sow they raise that has been insured. In the middle and western regions the subsidy will be shared among the central government at 60 percent and the local governments at 40 percent while in eastern regions, local government will pay the subsidy.

(China Daily June 23, 2007)