May 6, 2008

China steps up efforts to curb grain smuggling

China is intensifying efforts to crack down on grain smuggling as traders try to sell grains out of the country to profit from record high global prices, state press reported on Monday (May 6, 2008).

The crackdown is seen as part of China's efforts to keep domestic grain supplies stable amid soaring inflation.

Customs officials in the eastern city of Hangzhou city stopped four attempts in the past weeks that could have shipped nearly seven tonnes of rice and 33 tonnes of wheat out of the country illegally, the China Daily said.

Authorities in Ningbo city, also in Zhejiang, blocked more than 130 tonnes of wheat from being shipped out in four recent cases, according to the newspaper.

In March, global rice prices rose to their highest level in 19 years and wheat prices reached a 28-year peak, widening the gap with China's domestic prices.

China's commerce ministry last week issued a notice calling for tightened curbs on grain exports, faster imports of commodities such as edible oil, and a build-up of reserves of important agricultural products such as meat.

China's inflation mainly caused by increased food prices, reached 8.3 percent in March, well above the government's full-year target of 4.8 percent.