China to lift minimum wheat purchase prices

China will increase the minimum purchase prices for wheat in 2011, the country's economic planner said on Tuesday. Prices for white, red and mixed wheat would rise by 100 yuan, 140 yuan and 140 yuan per tonne, respectively, said the National Development and Reform Commission in a statement, lifting the minimum purchase prices to a range from 1,860 yuan to 1,900 yuan per tonne.
Local wheat prices are already higher than the minimum purchase prices. In 2004, China started setting minimum purchase prices to prevent farmers from suffering losses when market prices for grains were low. The government buys wheat from farmers at the minimum purchase price when domestic prices fall below those prices. Winter wheat, which makes up the majority of China's wheat crop, is being planted and will be harvested in June.