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          Corn imports and yields at record levels as prices ease

          Updated: 2011-10-27 11:29

          By Zhou Siyu (China Daily)

            Comments() Print Mail Large Medium  Small 分享按鈕 0

          Corn imports and yields at record levels as prices ease

          A farmer takes down dried corn in Hutouyan, Hubei province. According to the Ministry of Agriculture, corn yields this year in China are expected to reach a record 180 million tons compared with last year's 171 million tons. [Photo/ Bloomberg]

          BEIJING - China's corn imports hit a 10-month high of 245,000 tons in August, according to data recently released by the General Administration of Customs.

          Agricultural analysts said the high level of imports may help ease the upward pressure on the price of corn in China's domestic market, alleviating pressure on the government to contain the country's high inflation rate.

          The analysts also expect more imports of corn in the remaining months of this year, prompted by growing domestic demand and the declining price of corn on the international food market.

          Corn is widely used to feed pigs. Its rising cost in past months has drove up the price of pork. The price of food is an important element of the country's consumer purchase index (CPI), the country's main gauge of inflation.

          In August, the country's CPI surged 6.2 percent year-on-year, well above the government's 4 percent target for the year.

          "As the price of corn is declining in the international food market, we could use the imports to ease price hikes in the domestic market. This will also offer some help to the government in containing the surging CPI," said Ma Wenfeng, a senior analyst at Beijing Orient Agribusiness Consultant Ltd.

          Even higher imports of corn are expected over the next few months, according to the analysts.

          This is mainly being caused by rising demand in the processing industry this year. It uses corn to make starch, ethanol and other products, said Hu Bingchuan, researcher at the Rural Development Institute of the Chinese Academy of Social Sciences.

          "The corn harvest this year is going to be a bumper one but I don't think the increased yield will match the growth in demand," he said.

          "Corn imports this year might set a new record and exceed 2 million tons."

          According to the Ministry of Agriculture, corn yields this year are expected to reach a record 180 million tons, compared with last year's 171 million tons.

          Ma believes this year's imports will remain largely unchanged from last year.

          "China has enough corn stocks to meet domestic demand. The government should tighten its regulations over certain organizations in case there is hoarding and speculation," he said.

          In 2010, China's corn imports hit a historical high of 1.57 million tons, registering a staggering increase of 17.6 times year-on-year, according to the General Administration of Customs.

          This year, China's grain yield is expected to hit a record high of more than 550 million tons, marking the eighth consecutive year for increased production, Chen Xiaohua, deputy agriculture minister, said at a news conference on Sept 30.

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