Chinese Premier Wen Jiabao said the government will offer farmers more subsidies for grain production if oil prices rise further.
Wen said over the weekend that the agricultural subsidies will be increased gradually. He made the comments during an inspection tour of central China's Henan province, China's largest wheat-producing area, according to the central government's website.
Wen said earlier this month that China aims to spend CNY1.23 trillion ($195 billion) on its agricultural sector this year, up CNY186.8 billion compared with 2011.