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China Places Quotas on Grain Exports

by 5m Editor
2 January 2008, at 11:51am

CHINA - The Chinese goverment has started a temporary quota policy on the export of wheat, corn and rice powder in a bid to maintain an adequate domestic supply.

The move aims to pull back on grain exports, which have been boosted by rising international prices. The Chinese authorities also hope to stabilise domestic food prices according to an announcement from the Ministry of Commerce.

Details of the quota scheme have not been release yet, but the ministry said the scheme would remain in place until domestic prices levelled off.

The move is the latest in a line of government measures to stop rising food price inflation driven by shortages of items such as pork, edible oil and grain.

China's Ministry of Finance also announced on Sunday that it will be levying export taxes on wheat, corn, rice, soybeans and various processed grains in this year, just a week after China scrapped tax rebates for grain exports.

The export tax rates will range from 5-25 percent and affect 57 types of grain and grain products.

5m Editor