China has kicked off its nation-wide grain collection process, just as the country's autumn harvest reached new high. Farmers are looking ahead for a great harvest season since the government recently increased the minimum purchase prices for grains. But, storage has become a big challenge.
Grain production in China is expected to reach over 600 million tons this year, the 10th straight year of growth.
One tenth of this amount will go to the national reserves. Good news for farmers: minimum purchase prices have been adjusted up. Rice produced from the North-east part of China rose 2 Jiao per kilogram, from its original 3 yuan per kg. Corn price has also risen on a small scale.
"We will strictly follow government price policies, and adjust how much we purchase according to market price fluctuations," Song Zhiyuan, Deputy Manager of China Grain Reserves Corporation, says.
The price policy certainly protects Chinese farmers, but as more bag of grain flood in, storage space is running out.
"Jilin Province plans to purchase 20 million tons of grain, the highest in history. But storage space in the whole province is just enough for about 7 million tons," Song Hai He, Planning Director of China Grain Reserve Corporation of Jilin Province, says.
And China's largest local grain reserve, located in Dalian is already full. It is estimated that about 20 million tons of grain would have to be placed in open ground, with a big risk of getting spoiled.
Source: CCTV
