November 21, 2008
Grain bank starts in Heilongjiang
Heilongjiang, one of China's major grain producers in the northeastern areas, opened its first grain bank this week to specialize in grain deposit and lending businesses.
The bank will help to boost soy markets in northeast China by reducing market sources for grain and cutting reserve cost for farmers, according to analysts.
Depositors of Beidahuang Grain Bank ownership rights to the grain ownerships, and can sell the grain by themselves or trust the use right to the bank.
The grain bank will in turn distribute loans to depositors on 50 percent of grain price to relieve their money squeeze. Depositors can stock the grain in the bank as long as three months without fees, and pays monthly six yuan/tonne after three months.
If depositors fail to take away the grain after six months, the grain bank will sell the grain at the minimum protective price stipulated by the government, and charge the former15 yuan/tonne.