China’s main production areas have purchased more than 20 million tons of autumn grain in total.

On October 16, at a recent press conference, a representative from China’s National Administration of Grain and Material Reserves provided insights into the current state of grain procurement in the country. As the new autumn harvest begins, grain purchasing is being systematically conducted from south to north, with over 20 million tons of autumn grain already collected from major production areas.

According to the administration’s monitoring, following the release of the new summer grain, various companies involved in grain storage, processing, and trade have been actively engaged in the market, maintaining a faster purchasing pace compared to the previous year. Notably, the prices for both wheat and early indica rice have exceeded the minimum procurement price levels, which has eliminated the need for the government to initiate support purchases. By the end of September, the summer grain procurement season concluded successfully, with major grain enterprises having collected 66.83 million tons of wheat—an increase of 5.72 million tons from last year—and 7.73 million tons of early indica rice, up 740,000 tons year-over-year.

The autumn grain procurement is particularly significant due to its vast scope, variety, and volume, along with a lengthy collection period that is crucial for annual grain management. With autumn grains starting to enter the market, procurement efforts are ramping up, particularly in anticipation of high volumes of japonica rice, corn, and soybeans expected to peak in November.

To ensure the effective management of autumn grain procurement, the National Administration of Grain and Material Reserves has proactively planned and coordinated efforts. A notification outlining procurement requirements was issued on September 18 in collaboration with eight other departments, followed by a meeting on September 24 to finalize specific arrangements. Major corporations like COFCO Group have been mobilizing resources to ensure a smooth collection process, focusing on adequate storage capacity, funding solutions, workforce training, and transport logistics. Preliminary estimates suggest that key producing provinces have prepared storage facilities capable of accommodating over 300 million tons of grain, with the Agricultural Development Bank of China gearing up to provide around 200 billion yuan in credit for procurement.

An official from the administration indicated that the next steps involve enhancing the overall coordination of procurement activities, closely monitoring progress, price trends, expectations, and policy implementations. This approach aims to strengthen service to farmers and enterprises, ensuring a smooth selling process for farmers and promoting a stable grain market.