China will push to increase grain production capacity by 50 million tons under the nation’s drive to bolster food security and meet rising demand.
(Bloomberg) — China will push to increase grain production capacity by 50 million tons under the nation’s drive to bolster food security and meet rising demand.
Keeping grain output above 650 million tons is crucial to ensure adequate supply and maintain stable prices, the National Development and Reform Commission — the top economic planner — said in a report to the annual parliamentary gathering in Beijing on Sunday.
“We should keep total grain acreage at a stable level, promote the production of oilseed crops, and launch a new drive to increase grain production capacity,” Premier Li Keqiang said in his final government work report to the National People’s Congress.
That will include development of high quality farming land, support for the agricultural technology sector and more innovation in the seed industry, according to Li.
Authorities in Beijing have refocused on food security since the Covid-19 pandemic disrupted global agricultural supplies and as Russia’s war in Ukraine severely restricts trade in essential fertilizers. While China is the world’s biggest grain producer, the country has grown more dependent in recent decades on imports from suppliers like the US and Brazil.
Read more: Global Bird Flu Outbreak Leaves China Facing Baby Chick Shortage
“We are experiencing uncertainties in ensuring stable production of grain, and there is a tight balance between supply and demand for some agricultural products and supplies,” the NDRC said in its report. “Prices of grains on the international market remain high, which could cause ripple effects in the domestic market.”
Li set no clear timeline to achieve the increase in grain production capacity, though the plan was included among priorities for 2023 in his separate work report. China’s grain harvest was 686.55 million tons in 2022, the NDRC said in its report, and has been stable at over 650 million tons since 2015, according to state media.
China will also build more grain storage and logistics facilities, and ensure good planning for sales of grain stockpiles, the NDRC said. It will also seek progress in building national centers for soybean seeds.
–With assistance from Dan Murtaugh.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.