February 1, 2011

China's 2010 grain storage capacity nears 320 million tonnes

China's grain storage capacity at the end of 2010 stood at about 320 million tonnes, up 23% from end-2005, while that of edible oil surged 145% to 11.8 million tonnes, the State Administration of Grain said Monday (Jan 31).

The nation's grain drying capacity at end-2010 increased 48% to 71,000 tonnes an hour, the grain regulator said.

The combined assets of China's 16,549 state-owned grain enterprises as of December 31, 2010 reached RMB829 billion (US$125 billion), up RMB35 billion (US$5 billion).

China's wheat stocks, which are falling due to the government's regular auctions, remained more than the annual consumption amount.

During China's 11th Five-Year Programme between 2006 and 2010, the central government raised its reserves of edible oil and soy.

Meanwhile, the grain and edible reserves of local governments at end-2010 rose 26% and 208%, respectively, from end-2005.

Last year, in a bid to control surging food prices and tame inflation, China arranged the sales of 81.3 million tonnes of grain and 502,000 tons of edible oils from stockpiles. These represented 33% and 72% respectively of the total amount sold in 2006-10.

The National Development and Reform Commission said in October it will increase the minimum purchase price for wheat in 2011 by up to 8% from 2010 to up to RMB95 (US$14) per 50 kg.