Wednesday, December 23, 2009
Loans for Grain Price Support Purchases
The Agricultural Development Bank of China [the bank in charge of financing grain, cotton, and edible oil policies] issued a “Notice on Supply and Management of Loan Funds for Completion of Northeastern Fall Grain Procurement” to implement the central government's minimum price procurement policy. Branches of the bank are to supply funds to designated grain enterprises and Sinograin Co. from now until the end of April 2010 to purchase japonica rice, corn, and soybeans at minimum prices set by the government and to rotate grain reserves. Loans must be issued during the time when grain is purchased and according to the actual amount of grain purchased. Purchasers cannot refuse or limit grain purchases [from farmers]. The notice also directs banks to provide loans to fund subsidies and working capital for soybean crushing enterprises for purchase of soybeans.