January 25, 2008

China could become a net corn importer, but not this year

China would not become a net corn importer in 2008 despite increasing domestic demand for corn, said a government think tank Friday (January 25, 2008).

China's control on corn exports and its industrial use, as well as high international corn prices will prevent the country from being a net importer this year, said Xu Xiaoqing, deputy director of Department for Rural Economic Development Research under the State Council's Development Research Center.

However, China could become a net corn importer after this year, with increasing corn consumption, he said.

Meanwhile, the country's grain prices will likely remain high in 2008 due to high international prices and rising production costs, he said.

China last year exported 3.3 million tonnes of corn to South Korea and 4.9 million tonnes to Japan, according to statistics from China Customs.