Strolling a rural home appliance shop, Shen Liangsheng asked salespeople questions about the freezers on display as he considered buying one for his small village grocery store.

The 61-year-old from Liantang Township of east China's Jiangxi Province, was considering taking advantage of the government's subsidy to farmers for household appliance -- a nationwide policy that was rolled out in February.

"The old freezer is in bad shape, but still can do with at the moment. Since we enjoy the preferential policy, why not buy a new one?" said Shen.

Under the new program, more than 900 million farmers are eligible for a subsidy equal to 13 percent of the prices of home appliances they bought. The four-year policy was designed to stimulate rural consumption to boost domestic demand as exports weaken amid the financial crisis.

Increased sales could also help home appliance manufacturers upgrade their businesses and fare better in the economic downturn.

A pilot project began in December 2007 in the Henan, Shandong and Sichuan provinces, and was extended to nine more provinces a year later. It was nationally adopted as of February 1.

Ten types of products are covered under the policy: Color TV sets, refrigerators or freezers, mobile phones, washing machines, computers, water heaters, motorcycles, air conditioners, electro magnetic cookers and microwave ovens.

Price caps are set for these products. The rebate to the consumers is shouldered 80 percent by the central fiscal government, and 20 percent by provincial fiscal governments.

Only retailers who have won bids will be able to participate in the program.

Each household is allowed to buy two subsidized items under each product type, easing the original limit of one for each.