August 2, 2010

GM corn imports to have minimal impact on Chinese market

The impact of genetically modified US corn on the domestic Chinese market is likely to be limited, with import quotas at just 5% of total local production volumes, China's National Development and Reform Commission (NDRC) said Friday (Jul 30).

The NDRC also said that safeguards had been put in place to allay concerns about GM crops directly entering the food supply, saying the imported corn would only be used to feed livestock.

The supply of corn was "basically in balance" and that stockpiles were sufficient, but certain regions were seeing shortages, particularly in southern coastal areas, it added.

"This year, domestic corn prices have risen and live hog prices have fallen, and southeastern coastal regions have imported corn for feed purposes at lower prices...protecting the interests of pig-raising farmers."

It said the relatively small import volume would not force down prices of domestic corn or hurt China's farming community.

China received its first shipment of US GM corn in four years on July 21 amid concerns that poor weather conditions would dent the country's harvest this year.

But analysts and traders have already questioned the quality of the cargoes, saying their water content was too high and that they have been contaminated with mould.

The NDRC statement did not refer directly to the issue, but noted that while the attention paid to China's first shipment of GM corn was "understandable", certain people were "maliciously stirring up" the controversy on the fear that imports could curb price rises.