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The central government said Tuesday it has allocated 4.71 billion yuan (about US$587 million) in subsidies to farmers in an effort to support the work undertaken in the spring.

 

The Ministry of Finance said the subsidies include 3.67 billion yuan (about US$456 million) for the purchase of improved strains of seed, 540 million yuan (about US$67 million) for machinery, and 500 million yuan (about US$62 million) to cover farmers' bills for testing the soil of their farmland before applying fertilizers.

 

The subsidies allocated constitute part of the proposed budget spending for this year, said a ministry statement. The country's budget, tabled on March 5 to the national legislative body for approval, is expected to be passed at the end of the ongoing session of the legislature next week.

 

Total proposed subsidies for improved strains of seed stand at 4.07 billion yuan (about US$506 million), and the proposed subsidies for purchase of farming machinery is 600 million yuan (about US$75 million), said the ministry.

 

The subsidies are designed as part of the measures by the central authorities to boost agriculture production and ensure the security of food supply.

 

(Xinhua News Agency March 8, 2006)