China is expected to produce slightly less grain and cotton this year than in 1998, but more oil-bearing seeds, vegetables, fruits and aquatic products, according to an official report released by the Ministry of Agriculture.

The report says China's summer grain output rose 4.4 percent from last year to 118 million tons, but the autumn grain output is expected to drop 2.4 percent, mainly due to bad weather.

The planned cut in grain acreage is another factor for the drop in grain output, it says. The acreage of grain for the year dipped 0.6 percent from last year to 113 million hectares.

The acreage of cotton and sugar crops was reduced by over 600, 000 hectares and 330,000 hectares from last year, respectively, with their output for the year expected to drop 11 percent and 10 percent.

However, the acreage of oil-bearing crops and vegetables increased by 930,00 hectares and 1.3 million hectares, respectively, with their output expected to grow 11.9 percent and 8 percent on an annual basis, and fruit output is likely to rise about 10 percent.

According to the report, China's township enterprises have maintained steady growth momentum so far this year. From January to November, they reported a total output value added of 2.273 trillion yuan, up 14.6 percent from a year earlier.

In the first three quarters this year, the average cash income of farmers reached 1,460 yuan, up 4.8 percent in real terms, and farmers' net income this year is expected to continue to grow, the report says.