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GOC released its 2013 agricultural (including forestry and water conservancy) budget at RMB619.588 billion

On March 17, the NPC approved report on the implementation of the central and local budgets in 2012 and on the draft central and local budgets for 2013 submit by the Ministry of Finance.  According to the Report, the 2013 appropriation for agriculture, forestry, and water conservancy is 619.588 billion yuan, up 12.8% over last year's budgeted figure. The appropriation will be used to improve small irrigation and water conservancy facilities; improve the policy of providing general subsidies for purchasing agricultural supplies; continue the policy on providing subsidies for superior crop varieties, and increase subsidies for purchasing agricultural machinery to further mechanize China's agriculture.  Coverage of subsidies for agricultural insurance premiums will be expanded. Funds will be provided for carrying out major agricultural science and technology projects in the seed industry and other industries, and promoting the application of scientific and technological advances in agriculture.  Investment in overall agricultural development will be increased with the focus on major grain-producing areas and counties.  

According to the report, expenditure on agriculture, forestry, and water conservancy in 2012 amounted to 599.598 billion yuan, 109.2% of the budgeted figure and a 25.3% gain. The main reason for exceeding the budget was an additional investment during implementation in efforts to provide relief from disasters that affect agricultural production, prevent and control serious floods and droughts, build major water conservancy projects as well as irrigation and water conservancy facilities, reinforce small dilapidated reservoirs, and clean up and improve the flood defenses of small and medium-sized rivers.  Full text of the Report in English is available in link below:, Xinhua news, ZL)

China to increase agriculture subsidies to 200 billion in 2013

The Ministry of Agriculture recently announced the 2013 policy measures to support increases of grain production and farmers¡¯ income.  The ¡°four subsidies¡±, including grain subsidies, seed subsidies, input subsidies and machinery subsidies will total 200 billion yuan in 2013, increased from 160 million yuan in 2012.  The level of grain subsidies will remain at the last year¡¯s level of 15.1 billion yuan.  In addition to subsidizing seeds of rice, wheat, corn, cotton, soybean rapeseeds, and naked barley, pilot subsidy program will cover potato and peanut seeds in major producing areas.  Agricultural input subsidies and machinery subsidies will also be increased from 2012.  The government¡¯s subsidy scope will be expanded to cover livestock breeding, fishery resources preservation, and agriculture processing.  The minimum purchase prices for wheat and rice will be increased by as much as 10 percent from the levels in 2012, according to the Ministry.  Also, the central budget reward to key grain producing counties will continue in 2013 with the reward level not lower from the level of 28 billion yuan in 2012.  (, 3/20/2013, WBG)

China to spend 500 million yuan on preliminary processing of ag products in 14 provinces

In an effort to reduce post-harvest loss of agricultural products, the government will continue to subsidize preliminary agro-processing at product locations and the total fund will reach 500 million yuan in 2013, according to a guideline jointly issued by the Ministry of Finance and Ministry of Agriculture.  The processing projects mainly cover construction of potato storages, fruit cold storages, and drying facilities.  The central government launched the subsidy program in 2012, which has increased the potato and fruit storage capacity by 800,000 tons and fruit and vegetable drying capacity by 300,000 tons, respectively.  ( 3/20/2013, WBG)   


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