China raises rice purchase

Beijing, Feb 2 (IANS) China Thursday announced plans to increase the minimum purchase prices for rice increase in 2012 to encourage farmers to grow more grain.

It is the fifth consecutive annual increase through the top of the country's economic planning agency focused on promoting grain production and farmers' income.

National Development and Reform Commission raised the cost of middle and late indica rice to 125 yuan ($ 19.8) per 50 kg, an increase of 18 yuan in 2011 price.

Moreover, the price of japonica rice increased to 140 yuan ($ 22.18) per 50 kg, an increase of 12 yuan from 2011 Price, Global Times reported.

Rice and wheat are the two major grain crops in China. Domestic cereal production increased to 571.21 million tons last year, marking the eighth consecutive annual growth.

The country will also be more support for major grain producing areas, farmers and agricultural cooperatives to offer, the agency said.