Approved by the State Council, China has initiated quota license administration on export of wheat, corn and rice flour.
According to the Ministry of Commerce website, an official said that international grain price keeps soaring and China's grain flour export saw a rapid rise recently. In order to moderately adjust the export scale and avoid the impact on domestic supply, as well as stabilize current domestic grain price and guarantee China's grain safety, the country decided to make adjustments on its policy on grain export.
The new policy started on January 1, 2008 and is a temporary one which is in conformity with the WTO rules, and its implementation duration shall depend on the supply and demand fluctuations of the related domestic market.
The policy is another important measure taken to stabilize the domestic grain price and guarantee grain safety since the abolishment of export rebate of grain and its flour on December 20, 2007 and the imposition of a temporary tariff from January 1, 2008.
2007 witnessed China's fourth successive grain harvest, the basic balance between the supply and demand was reached and China's overall operations of grain market was steady.