Premier Li Keqiang stressed meticulous regulation amendments concerned with farmers' interests at an executive meeting of the State Council on Jan 4.
Farmers have been making tremendous contributions to China's economic and social development, and their will calls for firm respect, he said.
The draft amendment to regulations on grain circulation management was passed at the meeting.
The amendment, the Premier said, is aimed at protecting the legitimate rights and interests of grain producers, traders, and consumers, and safeguarding the national food security.
Through years of deepening reform, China's grain purchases have been going in both policy-based and market-oriented modes, with the latter making up a major share, according to data from the National Food and Strategic Reserves Administration.
Departments concerned should not only carry out sound policy-based purchases as a fundamental mode but also keep an active grain market to help keep up farmers' morale, in an effort to deepen and improve grain circulation and management.
The draft specified strict policy-based grain management, which prohibits false statements of purchase and storage, inferior grain quality, and embezzlement of fiscal subsidies and credit funds.
Quality safety monitoring on grain purchase and storage should be beefed up, and grain products with pesticide residues and excessive heavy metals are banned from being sold as food.
The draft also pinned down clear measures to prevent and reduce grain losses and waste.
The draft also intensified punishments on illegal activities.