BEIJING, Dec 19 (Reuters) – China will further cut corn seeded area next year in areas of low productivity to help trim swelling inventories, state radio cited the country’s agricultural minister as saying on Monday.
China, the world’s No.2 producer of corn, is facing ballooning corn surplus and was expected to unleash more supply into a saturated global market in what could be the first bulk exports in a decade.
Han Changfu, Minister of Agriculture, said on Monday that the country planned to cut another 667,000 hectres of corn area in 2017, bring the total cuts in two years to 2.67 million hectares.
The cuts will be mostly in the so-called “sickle” shape zones that span from northeast, northwest to southwest regions where corn productions were low and unstable, Han said.
Han also said more subsidies will be handed out next year to encourage farmers growing animal feeds instead of grains.
He said prices of most of Chinese agricultural products will stay relatively low in 2017, without elaborations.