China annouced that it will pay direct subsidies to grain farmers in 13 provinces in 2004. Officials said that at least RMB 10 billion (US$1.2 billion) of subsidies will be granted by the end of 2004. Analysts said the subsidies are unlikely to boost grain output. China recently announced plans to cut agriculture taxes by 1% yearly, with the goal of completely abolishing them within five years.
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