China's Cofco gets green light for corn variety bought from US

China's state-run Cofco Ltd. has obtained approval from plant quarantine authorities for bringing in a specific variety of corn purchased from the US, a person familiar with the developments said Monday (May 17).

"There shouldn't be any worry on quality clearance of genetically modified (GM) corn because Cofco has submitted the details of the variety it is importing from the US and got the approval beforehand," the executive said.

He said the details have been provided to China's Entry-Exit Inspection and Quarantine authorities under the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).

Cofco has purchased six cargoes of US corn containing around 60,000 tonnes each for shipment between July and September. In addition private buyers have also contracted imports of corn from the US and total purchases have risen to at least 15 cargoes, traders said.

The executive said private buyers are also working towards getting approval under AQSIQ, which regulates imports and exports of commodities.

China has stringent rules for imports of genetically modified foods and crops. There has been market speculation that if the recent corn purchases are rejected at ports, they may be diverted to South Korea and Japan, two of the world's largest buyers.

However, analysts said China does permit entry to imported corn which contains specific genetically modified events.

"Even when China wasn't importing much corn, the US was assiduously working over the years towards getting its GM varieties approved by authorities in Beijing and this may pay dividends now," said the executive.