China is planning to subsidise the upgrading and building of grain transportation and storage facilities in a government bid to improve the country’s agricultural sector.

According to a document issued by China’s National Development and Reform Commission (NDRC), facilities to load and receive grains along main railways and ports for major waterways could receive funding of up to 100M yuan (US$15M), Reuters wrote in a 24 November report.

The NDRC also said it would subsidise logistic parks that offered storage, processing, trading and quality inspection services, provided they occupied at least 20ha of land and had more than 100,000 tonnes of storage capacity.

Insufficient grain transport capacity had in the past caused backlogs in the north of China and driven up prices, while poor storage facilities continued to be a major cause of product loss, Reuters said.