China's sluggish rural economy may soon get a boost from new government subsidies, said a top legislator.

"In line with related World Trade Organization (WTO) rules, we should give farmers real backing," vice-chairperson of the Standing Committee of the National People's Congress Uyunqimg told a weekend forum on balanced rural and urban development organized by Guanghua Management School of Peking University.

She didn't say when the regulations will come into effect.

WTO rules allow members to subsidize agriculture. Farmers in developed countries use between 40 and 60 per cent of their income for agriculture development.

But statistics show only 7.7 per cent of farm income went back into agriculture in 2000.

And the numbers have gone down since 1978, when the proportion was 13.4 per cent. It was 10 per cent in 1990.

Zhang Xiaoqiang, vice-minister of the National Development and Reform Commission, expressed serious concerns over the sliding trend of the government's financial support for agriculture.

"The government is always emphasizing the importance of agriculture, but the total investment has been on the decrease," said Zhang. "I personally urge the government to notice the fact that nearly 800 million people are farmers most of whom are poor."

Farmers and economists believe the upcoming regulation is an essential part of the government's measures to invigorate rural areas, where more than 60 per cent of China's 1.3 billion people live.

Ju Hua, a 60-year-old farmer in the mountainous Tongjiang County of Sichuan Province, said his village is starving for investment for further development.

His five-member family has already earned enough to clothe itself and eat based on nearly one hectare of contracted land.

"But we are short of money to invest in cash crops and other sectors," said Ju.

Ju has been seeking a micro-loan to start raising pigs but banks are reluctant to lend him the money. He also cannot pin much hope on subsidies from the local government, which has always been in financial strain.

"I strive to borrow from relatives and friends, but their situation is similar to mine," said Ju, whose family earned 10,000 yuan (US$1,200) from growing traditional crops, such as wheat and rice, and raising pigs.

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