context: Structural imbalances remain in the grain industry amid the record-breaking annual output. While the influx of new crops creates an oversupply in the market for rice and wheat, there is a gap between domestic corn production and demand, and soybeans remain largely dependent on imports. The Ministry of Agriculture and Rural Affairs admit the national grain supply and demand are in a tight balance, a condition that has not fundamentally changed.
Zhang Xingwang 张兴旺 MARA (Ministry of Agriculture and Rural Affairs) vice minister provided an update on the ag and rural economic performance for the first three quarters of 2024 at a press conference on 25 October.
According to Zhang, the summer grain production reached 150 million tonnes, with both the summer grain and early rice harvests completed successfully. The area planted for autumn grains has seen a stable increase. As of 24 October, more than 80 percent of the national autumn grain harvest had been completed, marking yet another year of bountiful harvest.
Zhang stated that, based on feedback from various regions and expert yield assessments, most provinces have experienced increased production. While a few regions saw reduced yields due to natural disasters, the overall increase in autumn grain production is evident. Combined with the summer grain and early rice, the state's total grain production is expected to reach a new milestone of 700 million tonnes.
The area under cultivation has expanded. This year, the central government has significantly increased its financial support for grain production, implementing full-cost insurance and income insurance for corn, wheat and rice and raising the minimum purchase prices for wheat and early indica rice. These measures have boosted farmers' enthusiasm for growing grain. Adjustments in planting structures and the development of intercropping have also contributed to the stable or increased area for autumn grain cultivation, particularly for high-yield crops like corn.
There has been an improvement in yield per unit area. MARA, along with the National Development and Reform Commission, launched the soybean yield improvement project, and continue to implement the corn yield improvement campaign, as well as large-scale yield improvement actions for major oilseed and grain crops.
Localities are guided to implement key measures such as appropriate densification, improving sowing quality, integrated water and fertiliser management, all of which contribute to balanced and widespread yield increases. It is estimated that the contribution of yield improvements to the increase in grain production exceeds 70 percent.