Chinese Grain Production Down 5.2 Million Tons This Year After Continuous Rise for 12 Years



(Yicai Global) Dec. 8 -- China's continuous growth record in grain output, which ran for 12 years, has finally been broken this year, falling by 0.8 percent, or 5.201 million tons from last year to 616 million tons, the National Bureau of Statistics said.

Grain acreage in China totaled 113,028,200 hectares in this year, down by 314,700 hectares or 0.3 percent compared with last year.

A reduction in grain yield first occurred in 2003 and the Chinese government introduced a series of policies to incentivize farmers to grow grain. The country's grain acreage increased as a result and so did production.

In recent years, however, as grain prices slumped in the global market, the drawbacks of some of these policies became increasingly visible. The continuous 12-year growth in grain production came to an end following adjustments to government subsidies.

In 2003, the total grain acreage in China was 99.41 million hectares and grain production totaled 430.7 million tons. Last year, the figures rose to 113,340,500 hectares and 621.4 million tons for the total grain acreage and production, respectively.