August 22, 2006

China's Xiwang axes plan to import US GM corn

China's Xiwang Sugar Holdings Co has canceled a plan to import 50,000 tonnes of genetically modified corn from the US in September, as prices for homegrown corn are expected to fall with the new harvest coming to the market soon, China Feed Industry Association said Tuesday (Aug 22). 

"We do not plan to import corn from the US anymore this year because of prices. It's widely expected that corn output will jump this year, weighing on prices on the domestic market," Wang Yong, Board Chairman of Xiwang Sugar said.

"We may consider importing corn from the US next year, depending on prices, demand and supply," Wang added.

Xiwang Sugar imported 50,000 tonnes of GM corn from the US in July, local media reported earlier.

A company official said in May that Xiwang Sugar had been granted 100,000 tonnes of corn import quotas and had planned to import another 50,000 tonnes of GM corn in September.

Xiwang Sugar has started this year to acquire corn from Jilin province, a major corn producing region in China's north-east.

Based in eastern Shandong province, Xiwang Sugar is a crystallised glucose producer that uses corn as its raw material.

The market expects China to become a net importer of corn in a couple of years, amid rising demand from industrial uses, as well as higher feed consumption.

However, local analysts said, corn production would rise by a relatively large margin on increased acreage this year, pressuring an already delicate balance of demand and supply.