HEILONGJIANG Province, the country’s top corn producing region in the northeast, has agreed to again increase its subsidies to local corn processors to help the loss-making industry and encourage more use of domestic corn.

    The subsidies, which have already been doubled this year to 200 yuan (US$32.22) per ton, will be doubled again to 400 yuan per ton of corn they process from April 17, industry sources said.

    It was not clear how many processors will get more subsidies. Last time, 26 local processors were given 200 yuan per ton in subsidies for buying State corn.

    The provincial government did not say how much will be increased, but said “further support effort” is aimed at helping the industry and maintaining market, after high domestic corn prices saw stockpiles rise.

    The move will help empty grain silos as soon as possible and ensure enough room for new crop, said the government at a report on its website.

    The Central Government’s stockpile scheme, aimed at boosting rural incomes, has pushed domestic corn prices more than 30 percent above global prices in the past year, leaving millions of tons in stockpile and driving up imports of cheap corn and substitutes, including cassava and sorghum.

    The government is likely to cut the State support price for the 2015/16 harvest to encourage more use of domestic grain and bring down the volume of cheap imports, industry sources said.

    (SD-Agencies)