China allocates funds for spring grain production

The Chinese government has earmarked 122.2 billion yuan (19.5 billion U.S. dollars) from its central budget to subsidize spring grain cultivation, the Ministry of Finance (MOF) said on Monday.

The subsidies will be given to farmers to cover part of their springtime grain production costs, according to the MOF.

The central government has also set aside 31.5 billion yuan for the grain risk fund for 2013, as well as allocated 6.7 billion yuan raised from local governments for the fund.

The fund, which stands at 38.2 billion yuan, was set up in 1994 in order to safeguard farmers' interests, stabilize the grain market and ensure food security.