CHINA’S Ministry of Finance yesterday said it has added 4.4 billion yuan (US$688 million) in subsidies to the Grain Risk Fund to boost the country’s grain security.

With the additional subsidies, the capital of the Grain Risk Fund is 38.2 billion yuan, including 27.7 billion yuan, or 72.5 percent, earmarked for the 13 major grain-producing regions. All of the funds for the 13 regions have been appropriated by the central government.

The ministry said it believes the funding will ensure necessary spending by local governments to subsidize grain output and the set-up of cereal and cooking oil reserves.

“The funding will increase local governments’ abilities to encourage farmers to grow more, stabilizing the market and guaranteeing the grain and oil supplies,” the ministry said.

Established in 1994, the Grain Risk Fund is used to hand direct subsidies to grain growers and general subsidies to buy agricultural supplies and machinery