The move aims to encourage pig raising, while pork continues to be in short supply and the price remains high, and increase farmers' income, the ministry said.
Counties are classified as major live pig suppliers if they have an average annual supply of 600,000 to 800,000 pigs, according to the ministry.
The funds will be used mainly for the reconstruction of pig farms, the purchase of thoroughbred pigs and vaccinations.
The major live pig suppliers will be monitored by the government and the use of the funds will be supervised jointly by the Ministry of Finance and the Ministry of Agriculture.
China has suffered from a short supply of pork and ensuing price hikes, which contributed significantly to continuous rises in the country's consumer price index. The key inflation gauge rose 6.5 percent in August, much higher than the government target of three percent.
