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China Sets Up Tainted Milk Aid for Farmers

Posted on: Thursday, 9 October 2008, 09:00 CDT

The Chinese government said it set aside about $44 million to help farmers who lose money in the country's tainted milk powder scandal.

The Chinese Ministry of Finance said Thursday the subsidies would go to dairy farmers who suffered financial loses after disposing raw milk in five major dairy-producing province, reported Xinhua, China's state-run news agency

Four infants have died and more than 50,000 were sickened by the tainted milk powder.

Police in northern China's Hebei province arrested 14 people in the milk scandal, putting the total arrests in the province at 27, Xinhua said. The Hebei Provincial Public Security Department said police have questioned 91 people since the first arrests were made Sept. 29.

The suspects allegedly produced, sold or added the chemical melamine into fresh milk to manipulate protein tests, police said. The chemical, which could lead to urinary tract problems, was first found in powdered baby milk produced by dairy giant Sanlu Group, then later discovered in milk products from Chinese companies such as Yili and Mengniu.

Source: United Press International

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