China has announced a substantial increase in its budget allocation for stockpiling grains and edible oils this year, reinforcing its commitment to improving food security and reducing heavy reliance on imports, particularly from major suppliers like the United States and Brazil. The move comes as China seeks to bolster domestic agricultural production and ensure stable food supplies amidst global market uncertainties.
With total agriculture imports amounting to $234 billion in 2023, China’s focus on enhancing self-sufficiency in food production is evident in the allocation of 140.63 billion yuan ($19.54 billion) for stockpiling essential commodities, marking an 8.1% increase from the previous year. The government aims to support grain growers, encourage major grain-producing regions to maximize their yield potential, and maintain a strategic reserve to safeguard against supply disruptions.
In addition to expanding the stockpiling budget, China has also earmarked 54.5 billion yuan ($7.57 billion) for agricultural insurance premium subsidies, an 18.7% rise from the previous year. The government plans to raise the minimum purchase price of wheat, enhance insurance coverage for key crops like rice, wheat, and corn nationwide, and promote the production and yields of oilseed crops such as soybeans and rapeseed.
Premier Li Qiang emphasized the importance of comprehensive measures to secure China’s food supply within its borders, highlighting the nation’s commitment to food self-sufficiency and agricultural sustainability. The National Development and Reform Commission (NDRC) set a target of over 650 million metric tons for grain output in 2024, with a focus on steadily increasing overall grain production capacity to ensure a stable food supply chain.
China’s proactive steps to strengthen food security underscore its strategic approach to mitigating risks associated with market fluctuations and external dependencies, signaling a concerted effort to fortify the nation’s resilience in the face of evolving global challenges.