November 21, 2008
China's Ministry of Finance will cancel the 5 percent duty on the export of soy from December 1, so as to stabilize the price of soy produced in Northeast China's Heilongjiang Province.
Average price of soy produced in Heilongjiang is RMB3,400 to RMB3,600 a tonne, compared with merely RMB3,200 a tonne of imported soy.
Presently, all oil-refining plants in Heilongjiang have stopped production because the refining of per tonne soy produced in China will cause RMB200 to RMB300 losses.
According to data compiled by the Heilongjiang soy industry association, the import of soy in the province reached 150,000 tonnes in 2001, which grew to 300,000 tonnes in 2002.
However, the soy export in the province in 2005 arrived at 60,000 tonnes only and merely 28,000 tonnes in the period from January to September, 2006, as a large amount of soybean was exported to the nation from the US, Argentina, and Brazil.
US$1 = RMB6.835 (Nov 21, 2008)