March 3, 2008

China to regulate industrial use of grain

China will greatly monitor and limit the use of its grain for industrial purposes and will also curb exports, premier Wen Jiabao said.

This move has been seen necessary as grain, meat and other foodstuffs became major contributors to China's recent strong inflation growth.

The government sought ways to sustain grains crucial to the food supply like corn.

China's CPI in 2007 rose 4.8 percent, with December CPI up 6.5 percent year-on-year.