March 14, 2008

China Grain Reserves Corp buys 1.2 million tonnes of Heilongjiang corn

In a bid to stabilise grain prices, China Grain Reserves Corp (CGRC) started its plan to purchase 1.2 million tonnes of corn in Heilongjiang province on Wednesday (Mar 12). CGRC has recently acquired one million tonnes of corn in the province as part of its efforts to build up reserve stocks of corn and offer farmers an opportunity to sell their stocks for cash.

In this latest purchase exercise, farmers were paid RMB1.38 for one kilogramme of corn (second-grade). For lower grade corn, prices offered were RMB0.04/kg lower than the preceding grade.

According to traders, farmers in Heilongjiang are still holding on to 3.5 million tonnes of unsold corn stocks from October's harvest. This corn purchase exercise by CGRC will enable farmers to turn their stocks into cash, which can then be used to buy seeds or farm tools for the spring planting season.

RMB1=US$0.1410 (Mar 14)