China's grain output would hopefully reach 455 million tons this year and total food grain acreage may resume to 100 million hectares, if no severe natural disaster occurred, said Sheng Huaren, vice-chairman of the 10th NPC Standing Committee on Thursday.

In his report on implementation of land management law to the on-going meeting of the 10th Standing Committee of the National People's Congress (NPC), Sheng said even the total grain output of455 million tons still could not meet China's annual grain demand, which is estimated to be 490 million tons this year. It thus constitutes an urgent task for the Chinese government to go on enhancing grain production.

Sheng's report was based on the findings from an April inspection of a group he led to rural areas to look into how the land management law is executed.

Since the promulgation in early January of the "No. 1 Document" by the State Council and the Communist Party of China (CPC) Central Committee which offered a blanket of preferential policies to Chinese farmers, the report notes, China has retrieved 1,100 square meters of farmland by rescinding 3,763 economic development zones.

And a total of 11.3 billion yuan has been distributed to farmers in 13 major crop-planting provinces as direct subsidies, while agricultural taxes worth of 19.1 billion yuan have been exempted in 12 provinces.

"We witnessed farmer's regained enthusiasm in planting cereal crops during our trip," said Sheng, adding that problems exist nevertheless. the prices of production materials are still high, but return of planting grain keeps thin. Moreover, he added, state-owned banks are reluctant to provide loans to farmers.

The report shows that from 1999 to 2001, four state-owned banks closed down more than 30,000 branches in backward provinces' countryside for the fear that farmers normally lacked mortgage assets and guarantee fee.

To further increase grain output and improve farmer's life, Sheng urged local governments to implement the most strict farmland protection system, intensify capital input to agricultural infrastructure construction, further improve rural financial system and amend the land management law in compliance with reality.

Source: Xinhua