To protect local farmers from loss, China will continue purchasing maize and soybeans from northeastern provinces between December 2009 and April 2010, said the National Development and Reform Commission.
The purchase price for each ton of maize will be US$222.60 (1,520 yuan) in Inner Mongolia and Liaoning province; US$219.70 (1,500 yuan) in Jilin province; and US$216.80 (1,480 yuan) in Heilongjiang province, as shown in the official statement.
The Chinese government will also purchase soybeans at US$547.80 (3,740 yuan) per ton.
The government will also offer subsidies -- US$23.40 (160 yuan) per ton -- to northeastern China’s crushers who purchase domestic soybeans at US$547.80 (3,740 yuan) per ton, the statement said.
Grain reserve companies and feed producers from 16 southern provinces will also have government subsidies – US$10.30 (70 yuan) per ton – to purchase maize from northeastern China.
The incentives will be cancelled when market prices become higher than the purchasing prices.
