China Expects Record 2008 Grain Output on Larger Planting Area

By Lee Spears

Sept. 21 (Bloomberg) -- China, the world's biggest consumer of grain, may harvest a record output this year after farmers seeded more land with rice, corn and soybeans, the Ministry of Agriculture said.

The planting area this year was increased to 1.6 billion mu (263 million acres), 10 million mu more than last year, based on estimates, the ministry said in a statement yesterday on its Web site. The ministry didn't give estimates for total output this year.

China is focusing on raising crop yields to ensure it has enough to feed its 1.3 billion people. Increasing incomes and population are fueling food demand even as more agricultural workers seek higher-paying jobs in cities. Higher grain output this year would make the fifth increase in as many years, something China hasn't accomplished since its economy opened to the world 30 years ago, the ministry's statement said.

``This lays a solid foundation for maintaining stable, rapid economic development and curbing rapid price increases,'' the statement said.

Yield per unit area may also rise to records for rice, corn and soybean, the statement said. China this year doubled four major agricultural subsidies to 103 billion yuan ($15.1 billion), it said.

To contact the reporter on this story: Lee Spears in Beijing at lspears2@bloomberg.net.