January 8, 2008

China to require reporting of grain price increases 

To respond more swiftly to rising grain prices, China's government has required reporting of price increases for important agricultural commodities.

The National Development and Reform Commission promulgated the Notice on the Consumer Goods Price Increase Recording System on January 3rd.

Starting from January 1st, 2008, all important commodities and operators of grain, edible plant oil (soyoil, peanut oil, rapeseed oil and blend oil), pork, beef and mutton, milk are required to report price changes and the reasons for the increases to the local authorities.

The law would apply to those with more than a 5-percent increase in prices at any time or those who had raised prices by more than 8 percent within ten consecutive days.

Operators violating the rules will be required to bring the prices back to the originals or reduce the rate of increase.

The law is among a series of measures implemented recently to better control rising grain prices.

The government recently announced a one- year temporary export tariff ranging from 5-25 percent to be imposed on 57 kinds of raw grains and powder including wheat, maize, paddy rice, rice, and soy.

Meanwhile, export quota license management was imposed on three commodities of wheat powder, corn powder and rice powder.

Last December, China withdrew export rebate rates for 84 kinds of raw grain and powder including wheat, rice, corn, and soy.

China's wheat export tripled while corn exports rose 85 percent last year.