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China will offer more subsidies to some rice and corn farmers, to help ensure a strong grain harvest. It comes amid unfavorable weather this year. The decision was made at a meeting chaired by Premier Wen Jiabao, to ensure market supply and help ease inflationary pressure.
Crop damage has pushed up China's rice prices by 10 percent over the past month, leading to more imports from Vietnam. The government has approved 1.1 billion yuan in subsidies to farmers, to improve the Autumn grain harvest due in October.
The Autumn grain harvest, which includes mainly middle and late season rice as well as corn, accounts for 70 percent of the country's total grain harvest.