These subsidies, along with the removal of the agriculture tax, have somehow contributed to the country's decade long growth of grain output. But analysts argued that the minimum purchasing price, which is much higher than the market, has resulted in a considerable price discrepancy between the domestic and global markets.

This year, the government increased its mandated minimum purchasing price for wheat by 70 percent to ensure food security.

As Wednesday's meeting pledged more market involvement in the pricing of agriculturalproducts, the central government's responsibility for price controls will be mainly seen with "grains, cotton, oil plants and sugar plants", the statement said.

"Under the premise of self-sufficiency and food security, policies on imports and exports and the storage of grains will be adjusted to prevent steep price fluctuations," it said.

"The harvest of the summer grain crop this year is settled, . but the shortage of storage rooms has become a problem," the statement said, pledging that the country will build another 100billion metric tons of storage capacity by 2017.

Gao Fang, vice-president of the China Cotton Association, said linking subsidies to target prices can protect the interests of farmers while nurturing a market-oriented pricing mechanism. She rebutted the allegation that the change will dent the motivation of farmers.

The Ministry of Agriculture said it expects higher output of winter wheat and early-season rice this year, which will bolster food self-sufficiency and ease worries about food security.

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