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Low farm incomes may lead to crisis

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A senior economist has warned that if income disparity between farmers and urban residents does not stop growing, the problem could deteriorate into a socio-political crisis.

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And political campaigns and spot checks on fee collection are no cure to the excessive financial burden on the country's 800 million peasants, Professor Chen Jiyuan said.

The director of the Rural Development Institute under the Chinese Academy of Social Sciences yesterday told a seminar in Hong Kong that a poor distribution system had led to excessive stockpiles of some agricultural products, adding to the difficulties facing the peasants.

The central Government needs to provide funds to support the sector and relieve the burden on farmers, Professor Chen said.

He said more companies should be encouraged to invest in the farming sector to help agricultural products enter the market.

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He also suggested a slower rate of development in the industrial sector would free more resources for the country's agriculture.

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