China to increase financial aid for agricultural production

China's State Council said in a statement on Wednesday that it will increase financial support for agricultural production in a bid to "mobilize the initiative of farmers to plant crops and ensure an adequate supply of agricultural and sideline products".

The financial support includes increasing the subsidies for farmers' purchase of production materials and seeds, and raising the government's purchasing prices of grain.

The move is also part of the government's effort to bring down the surging food prices, which have contributed a great deal to the country's high inflation.

Earlier this month, the central government announced its budget for agriculture, farmers and rural areas this year reached RMB 562.5 billion, 30% higher than last year.