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Government to Subsidize Peanut Production
2009-12-30

To improve vegoil self-supply, the government plans to provide subsidy to peanut production next year. BOABC holds that the policy may have little impact on improving vegoil self-supply, though it may help increase peanut production.

The major vegoils consumed in China are soyoil, palm oil and rapeseed oil, whose combined consumption accounts for 81% of the total vegoil consumption in 2008/2009, but peanut oil consumption only accounted for 8.9% of the total.

About 40% of peanut production is consumed for food use each year, leaving a limited amount for oil production.