China's state-owned grain reserve enterprises are expected to purchase around 840 billion jin (420 million tons) of grain from farmers and producers this year, which will mark the second consecutive year that the grain purchase volume is above 400 million tons, the National Food and Strategic Reserves Administration said on Thursday.
The country's total grain output hit a record high of 706.5 million tons, an increase of 1.6 percent from last year.
The grain market has remained stable, supported by a combination of market-oriented procurement strategies and policy reserves. Authorities have also enhanced services for farmers and enterprises while implementing measures to facilitate grain sales and ensure efficient storage of harvested crops, according to the administration.
"In recent years, grain purchases have steadily increased. This year's purchases are projected to reach around 840 billion jin, surpassing the 800-billion-jin mark for two consecutive years," said Luo Shouquan, director of the administration's grain reserves department.
Luo said that the procurement of new-season autumn grain is accelerating across the country. Corn purchases are in full swing in northeastern and northern China, while the southern regions have nearly completed the procurement of middle- and late-season rice.
To date, over 370 billion jin (185 million tons) of autumn grain has been purchased nationwide, representing a 10 percent increase compared to the same period last year. Of this, over 100 billion jin (50 million tons) of rice was procured at minimum support prices, effectively meeting farmers' sales needs and stabilizing market expectations.
"Autumn grain purchases feature rapid pace, active transactions, and increasing inventories. Since the release of mid- and late-season rice into markets, the minimum purchase price policy has been implemented in four provinces -- Henan, Jiangsu, Heilongjiang, and Anhui -- providing an effective price floor and safety net for farmers," said Luo.
"Market activities have been particularly strong. Corn processing enterprises in northeast China are operating at around 90 percent capacity. Enterprises have also shown a stronger willingness to build inventories, leading to a steady rise in commercial corn stocks, which have increased by over 30 percent year on year," he said.
China's grain purchase expected to reach 420 million tons in 2024: official
