The Ministry of Finance says the Chinese central government will earmark nearly 10 billion yuan (US$1.2 billion) to increase grain yields.

The government will undertake a string of measures to improve yields on two-million-hectares of poor soil.

The measures include repairing and digging out water tunnels for better irrigation and planting forests to reduce erosion.

These measures are expected to increase yields by three billion kilograms and the incomes of 30 million farmers.

The central government will also assist grain-processing enterprises to expand their business this year.

(CRI March 27, 2005)