China's central government on Wednesday announced funding for the use of water-saving irrigation technologies in major grain-producing regions, a move aimed at boosting grain output for the country's 1.3 billion people.

According to a joint statement issued by the Ministry of Finance, the Ministry of Water Resources and the Ministry of Agriculture, China will invest 38 billion yuan (6.03 billion U.S. dollars) in water-saving irrigation projects covering 2.53 million hectares of farmland in Heilongjiang, Jilin and Liaoning provinces and Inner Mongolia autonomous region from 2012 to 2015.

Of the investment, 22.8 billion yuan will come from subsidies by the central government, 20 percent will derive from fiscal arrangements by provincial-level governments in Heilongjiang, Jilin, Liaoning and Inner Mongolia, and local governments at the city or county levels, as well as farmers, will contribute to the remaining portion, respectively.

Droughts, natural disasters, and a shortage of water resources have threatened stable grain growth in the world's most populous nation, according to the statement.

Grain output by Heilongjiang, Jilin, Liaoning and Inner Mongolia accounts for more than one-fifth of China's grain production.

The promotion of water-saving irrigation technologies in those regions will boost the potential of grain production and create grain security for the country, the statement said.

According to the statement, the funding will be used mainly to promote trickle irrigation and micro-sprinkler irrigation in those regions.

China's grain output rose to a record high of 571.21 million tonnes in 2011, marking eight consecutive years of growth.

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