The Ministry of Finance said on Friday the government will
subsidize insurance payments for pig farmers to protect the
industry from collapsing in the event of disease outbreaks, and to
stabilize rising pork prices.
The ministry will also spend 470 million yuan (US$61.7 million)
to subsidize people with low incomes and 280 million yuan for
college students from poor families to cushion the impact of hiking
pork prices, Zhu Zhigang, vice-minister of finance, said.
The pig raising insurance and subsidy plans are expected to
start at end of this month.
A total of 6.5 billion yuan (US$853 million) would be needed to
ensure the implementation of those measures this year, with 3.8
billion yuan expected to come from to the central government's
coffers, Zhu said.
The measures were announced in a circular posted on the
ministry's website on Friday.
Pork prices were 29.3 percent higher in April, year-on-year.
Prices continued to rise in May before edging down in the first 10
days of June.
The State will also give farmers 50 yuan (US$6.60) a year for
each sow they raise that has been insured. In the middle and
western regions the subsidy will be shared among the central
government at 60 percent and the local governments at 40 percent
while in eastern regions, local government will pay the
subsidy.
(China Daily June 23, 2007)