China started a temporary quota policy on the export of wheat,
corn and rice powder on Tuesday, in order to guarantee an adequate
domestic supply.
The adjustment aims to curb grain exports boosted by climbing
international prices, and stabilize domestic food prices, said an
announcement on the Ministry of Commerce website. The details of
the quota are unspecified, but it will be implemented through a
permit policy.
The period of the policy will be decided by the demand and
supply situation of related domestic markets, the announcement
said. The step added to a string of government measures to rein in
food price inflation driven by shortages of items such as pork,
edible oil and grain.
China's Ministry of Finance announced on Sunday that it would
levy export taxes on wheat, corn, rice, soybeans and various
processed grains in 2008, 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. Several factors have driven up
global grain prices this year, including rising demand, adverse
weather in key growing nations and increased use of grains for
fuel.
Wheat prices hit a record high in Chicago on strong global
demand and shrunken output after bad weather hit the world's major
producers such as Australia and Canada.
Buoyed by demand from the ethanol industry, prices of corn have
also risen. By Friday on the Chicago Board of Trade, the price of
corn for March delivery rose to 4.55 US dollars a bushel from 4.43
US dollars the previous week.
The nation exported 4.87 million tons of corn in the first 11
months of 2007, up 85.3 percent from the previous year. Exports of
rice rose 5.8 percent to 1.13 million tons and exports of wheat
soared 206.51 percent to 1.85 million tons.
"The grain supply and demand is generally balanced in China
after four years of bumper harvests," the announcement said, adding
that the policy was only to guarantee domestic food security.
(Xinhua News Agency January 2, 2008)
