Regulation and Policy 

Zhejiang Province to Stabilize Early Rice Production 

(November 1, 1999) 

October 21, Hangzhou  After years of being considered as trouble because of low quality and the resulting overstock, early rice has gained reasonable attention in the province. 

The provincial government has decided to continue to include early rice in its state procurement purchase and protective (price) purchase list when setting its strategy of grain restructuring. 

With Zhejiang's rapid economy development in early 1990s, affluent residents in the province removed this rice from their daily diets, and rich farmers became unwilling to invest in the labor-intensive farming practice to provide this unprofitable rice. 

In order to fulfill central state government’s requirement to maintain grain output, the provincial government took administrative measures to persuade and compel farmers to produce huge volumes of early rice on 13 million mu of acreage. The government had to buy and hold as much as possible and bear a heavy financial burden, as a result of consecutive harvests, sluggish marketing and meager local consumption. 

Last year the province followed the central government's grain reform decision to begin grain restructuring, reducing the acreage of early rice to about 10 million mu. This year the output sees a drop of 500 million kg to 3.4 billion kg. The overstock declined to a normal level through intensive marketing. 

While reducing the production scale, the province still realizes early rice's important role in its light industry and specific consumer market.  

1)      As a major grain-producing province, its gourmet powder industry accounts for one-sixth of China's output and this industry alone consumes 220 million kg of favored 2 to 3 year old early rice each year. This variety is also really needed in the traditional food and snacks. 

2)      It has a great market potential among more than 5 million migrant workers in Zhejiang because of the low price and durability. 

3)             Despite the coarse texture, its durability and advantage against mold make it suitable for state reserve purposes. 

Now the provincial government uses subsidies plus procurement prices to stabilize 8 million mu of early rice production and promote the quality varieties to meet the real local demand and facilitate marketing.