April 15, 2008

China ensures sufficient grain supplies to Hong Kong

China's Ministry of Commerce has ensured that grain and grain product supplies will be provided to Hong Kong.

However, the ministry warned of penalties in case the shipments will be forwarded to other markets.

Wheat, corn, rice and flour made from these grains could only be sold to Hong Kong and violators would have their export licenses suspended, the ministry pointed.

A relevant authority should issue a license strictly according to the quota allocated by the government and note on the license that the export is only to Hong Kong with no transshipment is allowed.

Hong Kong importers had to keep clear inventory and sales records that tracked food imported from the mainland.

The Chinese government imposed restrictions on food exports this year to guaranteed domestic supplies.

Premier Wen Jiabao assured mainland supplies of agricultural products to Hong Kong and Macao on March 31.

However, as connections between the domestic and world grain markets increased, it had become more difficult to maintain stable domestic prices, the State Administration of Grain director, Nie Zhenbang, said.

China harvested 501.5 million tonnes of grain in 2007, but prospects might be less favorable this year due to severe winter weather in southern regions damaged crops.