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China Subsidy Exchange

September 18, 2017

China Strengthens Supports for the Grain Industry

On September 8, 2017, the General Office of the State Council of China published Opinions on Accelerating and Promoting the Structural Reform of Agricultural Supply and Strongly Developing the Grain Industry Economy (Guo Ban Fa (2017) No. 78), to promote the development of China’s grain industry.  The Opinions aim to have approximately 7% of average annual industrial added value growth, 88% of grain processing and transformation rate, and over 25% of main food industrialization rate in the grain industry, by 2020.  The Opinions encourages cultivation and expansion of market participants in the grain industry, innovation in the development pattern, acceleration of industrial transformation and upgrade, strengthening of science and technology innovation, cultivation of talent, and building of a sound development foundation including post-sales service, logistics, and safety guarantee.  As supporting measures to effectuate the goals, the Opinions call on the government to strengthen government supports through grants and preferential tax, land, and electricity policy, and call on both the policy financial institutions and commercial financial institutions to increase credit loan support to the grain industry and leading agricultural enterprises, and provide insurance service for grain enterprises to engage in foreign trade and investment.