China's National Development and Reform Commission (NDRC) has that the minimum purchasing price for rice is likely to be increased slightly in the current year in an effort to protect farmers' interests in grain production.

The current low price of farm produce has contributed to a reduction in the farming population in China with 210 million of the 900 million rural population switching to urban and township enterprises.

China started to set minimum purchasing price in 2004. When prices are too low on the market, the government buy's rice from farmers at the minimum purchasing price, so that farmers do not suffer major losses.