The Agricultural Development Bank, one of China's policy banks, has offered a loan of nearly 81.5 billion yuan to support wheat purchases.
It comes amid word the the harvest season for wheat has been delayed by at least a week due to bad weather.
This will delay the time to market.
Li Nan with the Agricultural Development Bank says the quality of this year's crop tends to differ from one area to the other.
"For instance, the quality of wheat produced in north of Henan, Hebei and Shandong are better. The crops produced in the southern provinces, including Henan, Anhui and Hubei are of relatively poor quality because of the heavy rains and lower temperatures. This, in turn, makes it difficult to purchase wheat."
Agricultural authorities say they plan to purchase up to 100,000 bushels of wheat a day from farmers while they prepare for the main thrust of the harvest to come in.
Some 200 million yuan is going to be distributed to individual wheat-growing areas while they wait for the harvest to arrive.
