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China's cornbelt provinces to offer subsidies to feed producers
February 28, 2017 / 9:40 AM / 9 months ago

China's cornbelt provinces to offer subsidies to feed producers

BEIJING, Feb 28 (Reuters) - 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 Liaoning.

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 by end-June.

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 alcohol. ($1 = 6.8696 Chinese yuan) (Reporting by Hallie Gu and Josephine Mason; Editing by Amrutha Gayathri)

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