BEIJING Feb 28 China's northeastern
Heilongjiang province doled out subsidies to feed producers, the
latest in the nation's cornbelt to do so, a document issued last
week on the website of the provincial grain administration
showed, following similar moves by cornbelt provinces Jilin and
The measures came after Beijing issued a document in
January, urging corn producers in the northeast to offer
subsidies to feed producers.
Feed producers will get 300 yuan ($43.67) of subsidy for
every tonne of new crop bought by end-April and processed by
end-June, according to the document on the website of
Heilongjiang Provincial Grain Administration.
Only feed producers that produced more than 50,000 tonnes in
2015 and have local operations can apply for the subsidy,
requirements that are in line with the central government's
document. The producers must also buy local corn and store it in
their own facilities, the provincial document said.
Jilin province, another major corn producer in the cornbelt,
announced a similar policy in mid-February, offering 200 yuan of
subsidy to feed producers for every tonne of new crop processed
Liaoning province, also a major corn producer in the
northeast, said it would give 100 yuan of subsidy to feed
producers that met requirements, state media Liaoning Daily
reported last week.
The recent policies are unlikely to spur a hike in corn
buying, as the bulk of China's feed-making industry is in the
south and is not eligible for the subsidy.
China abandoned a decade-long corn stockpiling programme
last year to tackle its huge corn glut.
Local governments in the cornbelt provinces, under the urge
of Beijing, have intensified their efforts to boost use of corn.
In October last year, Heilongjiang, Liaoning and Jilin
offered subsidies to corn processors, the second-largest users
of the grain who make products such as corn starch, sugars and
($1 = 6.8696 Chinese yuan)
(Reporting by Hallie Gu and Josephine Mason; Editing by Amrutha