According to the Reuters agency, China has expressed its intention to increase this year’s domestic grain reserves by 25 million tons, and maintain government stock at a level sufficient for domestic consumption for a period of no less than six months.

The government of the PRC also plans to increase its grain storage capacities by 50 million tons during 2014-15, primarily in the northeastern and southern grain-producing areas of the country.

As for pricing politics in the grain industry, China will try to limit government’s regulations on key products in the form of purchasing and commodity interventions, and promote market mechanisms. All of this, according to the authorities, will encourage farmers to increase agricultural production.

The government’s report says that the new policy will initially be carried out in the markets of soybeans and cotton. If market prices will fall below the target level- farmers will be subsidized. If prices will rise to levels that threaten higher inflation, then consumers will be subsidized.

The authorities of the PRC have also mentioned that they will take measures to develop the poorer western and central regions. Greater investments will be made in energy, transport and information infrastructures in these areas.