CHINA’S northeastern Heilongjiang Province has doled out subsidies to feed producers, the latest in the country’s cornbelt to do so, a document issued on the website of the Heilongjiang provincial grain administration showed, following similar moves by cornbelt provinces Jilin and Liaoning.

    The measures came after the Central Government issued a document in January, urging corn producers in the northeast to offer subsidies to feed producers.

    Feed producers will get 300 yuan (US$43.67) of subsidy for every ton of new crop bought by the end of April and processed by the end of June, according to the document on the website of Heilongjiang Provincial Grain Administration.

    Only feed producers that produced more than 50,000 tons in 2015 and have local operations can apply for the subsidy, requirements that are in line with the Central Government’s document.

    The producers must also buy local corn and store it in their own facilities, the provincial document said.

    Jilin Province, another major corn producer in the cornbelt, also announced a similar policy in mid-February, offering 200 yuan of subsidy to feed producers for every ton of new crop processed by the end of June.

    Liaoning Province, also a major corn producer in the northeast, said it would give 100 yuan of subsidy to feed producers that met requirements, Liaoning Daily reported.

    The recent policies are unlikely to spur a hike in corn buying, as the bulk of China’s feed-making industry is in the south and is not eligible for the subsidy.

    China abandoned a decade-long corn stockpiling program last year to tackle its huge corn glut.

    Local governments in the cornbelt provinces, under the urge of the Central Government, have intensified their efforts to boost the use of corn.

    In October last year, Heilongjiang, Liaoning and Jilin offered subsidies to corn processors, the second-largest users of the grain who make products such as corn starch, sugars and alcohol.

    (SD-Agencies)