China plans to support 11 key farm products and establish 35
world-class agriculture development zones during the next five
years, according to strategic guidelines drafted by the Ministry of
Agriculture.
The plan aims to fight the flooding of foreign farm products after
China's
access to the World Trade Organization (WTO); and helps
domestic agricultural producers compete for more of the world
market share, said an official with the ministry.
To
set up a healthy and competitive agricultural development system,
the ministry - as a first step - will give financial, policy and
scientific support to 11 selected products, increasing their
capacity and competitiveness.
They include special purpose wheat, special purpose corn, high-oil
soybean, cotton, rape, sugarcane and milk - which have a huge
demand in the domestic market.
The ministry hopes the products dominate the domestic market with
reduced costs and improved sales networks to resist competition
from foreign products and protect Chinese farmers' interests.
On
the other hand, products with market potential and price advantage
- apples, oranges, beef, mutton and aquatic products - should
expand exports by building a better market image and improving
quality and management.
The country will increase financial inputs to key products as well
as offer preferential tax policies this year.
China will also expand agricultural subsidies to soybean and
special purpose wheat this year; and then gradually extend them to
other products.
There will be exemption of special agriculture tax on produce such
as apples, oranges, sugarcane and aquatic products. In addition,
the government will set up special funds, providing agricultural
insurance to aquatic products, milk, beef and mutton.
China will also encourage the establishment of various sector
associations, which will help farming enterprises deal with
international disputes involving dumping, subsidies and
protectionism.
(China Daily March 27, 2003)