China's direct subsidy to its hundreds of millions of farmers
will rise 63 percent from a year earlier to 42.7 billion yuan
(US$5.6 billion) this year, the Ministry of Finance announced
Monday.
The subsidy includes 15.1 billion yuan earmarked for grain
planting and 27.6 billion yuan for farming materials like
fertilizers and pesticides.
Zhu Zhigang, deputy finance minister, said the huge increase in
direct subsidy to farmers will help raise their incomes and grain
output.
Zhu added the money should fall into the pockets of the farmers
before the end of June.
Following the cancellation of the 2,000-year-old rural tax
system in 2006, China started to offer farmers direct subsidies
amid efforts to boost their incomes as the price hikes in
fertilizers and other farming materials ate part of their
benefits.
(Xinhua News Agency May 22, 2007)