April 15, 2008

North Korea to import Chinese corn on domestic shortage

North Korea has arranged to purchase 150,000 tonnes of corn from China this year to ease shortage, aggravated by severe flooding the previous year.

North Korea's request came as China implements restrictions on food exports due to burgeoning domestic demand and skyrocketing grain prices on the international market.

China has decided to export 50,000 tons of corn this year, one source said, adding Beijing will likely decide later on whether to ship more corn.

North Korea's corn imports from China rose 1,523 percent to 27,600 tonnes in February this year, Chinese statistics stated.

The sharp increase in China's corn exports to North Korea should be seen as the result of China's increased the corn export quota for North Korea, the source said.

Industry players said that North Korea will likely push for more corn imports from China, yet it will be difficult for China as its own food supply is also threatened by escalating grain prices.