September 24, 2007

China shaves 2 percent off soy import duties

China's government said that it will reduce its import duties on soy to one percent from three percent  currently, effective October 1, 2007.

The central government made the announcement on its website in a notice drafted by eight ministries and departments, including the top planning body -the National Development and Reform Commission, the Ministry of Commerce and Ministry of Finance.

The cut was possibly a temporary move to stabilise food prices and curb rising inflation. Market sources have been expecting the move as China's hog market revives and demand for soy products revs up.