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A calculation by the Agriculture Ministry shows that Chinese farmers will each have an extra 140 yuan (US$17.5) in their pockets in 2006 as a result of tax savings.

Since China started rescinding rural taxes and fees in 2000, the country's 900 million farmers have had their annual tax burden reduced by more than 100 billion yuan (US$12.3 billion).

Efforts in favor of farmers this year include 14.2 billion yuan of direct grain subsidies and 12.5 billion yuan of other subsidies.

The subsidies have dampened the impact of rising prices for seeds, fertilizer, diesel and other commodities which have pushed up farming costs.

Central government subsidies for agricultural machinery and tools doubled to 600 million yuan in 2006 and local government subsidies rose 30 percent to 1.06 billion yuan.

(Xinhua News Agency October 18, 2006)