- DTN Headline News
China Holds Grain Import Quotas Steady
Thursday, December 18, 2014 3:52PM CST

By Lin Tan
DTN China Correspondent

BEIJING (DTN) -- Chinese grain companies are currently applying for the import quota for 2015, and while the quota level remains the same as last year, actual imports may not meet the quota.

"The import quota did not change for more than 10 years in China, but the requirement for companies to make application is changing. Small companies may not be qualified for the import quota," said Wenge Fu, a professor at China Agricultural University.

According to China National Development and Reform Committee (NDRC), the country will allocate its grain import quota according to regulations in place since 2003. Grains such as wheat, corn and rice are under the control of the quota system, while other crops, like soybeans and sorghum, have no quota restrictions.

The wheat quota will be set at 9.64 million metric tons (354.2 million bushels), 90% of which will be allotted to state-owned companies.

Sixty percent of the corn quota, at 7.2 mmt (283.4 mb), will be given to state-owned companies. And on rice, 50% of the 5.32 mmt quota will go to state-owned companies.

"Though there is some portion of the quota open to private importers, it could also be given to state-owned companies as the allocation of this portion is flexible," Fu said.

While the import quotas haven't changed in a decade, China announced new application rules. "The regulations used to require wheat mills to have a daily capacity of 500 (metric) tons, but now require a company to have processed 100,000 (metric) tons of wheat in 2013 or 2014," Fu said. "This means the importer needs a historical production record, not only a processing capacity." Newly established processors could not apply for the quota.

The Chinese government will still have a strong impact on corn imports since only 40% of the import quota can be allocated to private importers. Fu said the recent unofficial announcements of China's approval of corn with the MIR 162 trait for import will make trade with the U.S. easier, "But we do not expect China to import a huge amount of corn in the following year because of the historically high government storage pileup in China."

China has rejected more than 1.25 mmt of U.S. corn cargoes since last year because the shipments contained MIR 162. According to statistics, the country imported 1.73 mmt of corn from the U.S. before the trait issue arose in November in 2014.

"The government is worried about corn imports because it may impact its policy of food self-sufficiency," Fu said. Some officials were worried that China will become the world's largest corn importer, following the soybean market. But he said the quota program will be one of the key tools the Chinese government uses to keep that from happening.

(KM/AG)


blog iconDTN Blogs & Forums
DTN Market Matters Blog
Katie Micik
Markets Editor
Monday, December 22, 2014 6:44PM CST
Friday, December 19, 2014 5:20PM CST
Monday, December 15, 2014 5:20PM CST
Technically Speaking
Darin Newsom
DTN Senior Analyst
Monday, December 22, 2014 11:04AM CST
Sunday, December 21, 2014 3:09PM CST
Saturday, December 20, 2014 2:06PM CST
Fundamentally Speaking
Joel Karlin
DTN Contributing Analyst
Thursday, December 18, 2014 6:51PM CST
Wednesday, December 17, 2014 4:08PM CST
Friday, December 12, 2014 1:27PM CST
DTN Ag Policy Blog
Chris Clayton
DTN Ag Policy Editor
Sunday, December 21, 2014 2:51PM CST
Friday, December 19, 2014 5:01AM CST
Thursday, December 18, 2014 10:20PM CST
Minding Ag's Business
Marcia Taylor
DTN Executive Editor
Monday, December 15, 2014 11:10PM CST
Wednesday, December 10, 2014 4:08PM CST
Wednesday, December 10, 2014 4:00PM CST
DTN Ag Weather Forum
Bryce Anderson
DTN Ag Meteorologist and DTN Analyst
Friday, December 19, 2014 9:58PM CST
Thursday, December 18, 2014 4:33PM CST
Tuesday, December 16, 2014 12:10PM CST
Monday, December 22, 2014 4:40PM CST
Friday, December 19, 2014 9:16PM CST
Friday, December 19, 2014 6:04PM CST
DTN Production Blog
Pam Smith
Crops Technology Editor
Wednesday, December 10, 2014 9:45PM CST
Wednesday, December 3, 2014 10:38PM CST
Wednesday, November 26, 2014 8:49PM CST
Harrington's Sort & Cull
John Harrington
DTN Livestock Analyst
Friday, December 19, 2014 10:49PM CST
Friday, December 12, 2014 8:04PM CST
Friday, December 5, 2014 9:21PM CST
South America Calling
Alastair Stewart
South America Correspondent
Friday, December 19, 2014 3:35PM CST
Tuesday, December 16, 2014 8:43PM CST
Monday, December 15, 2014 11:32PM CST
An Urban’s Rural View
Urban Lehner
Editor Emeritus
Monday, December 22, 2014 12:14PM CST
Monday, December 15, 2014 6:48PM CST
Monday, December 8, 2014 12:08PM CST
Machinery Chatter
Jim Patrico
Progressive Farmer Senior Editor
Tuesday, December 16, 2014 6:43PM CST
Tuesday, December 9, 2014 10:13PM CST
Tuesday, December 2, 2014 10:15PM CST
Canadian Markets
Cliff Jamieson
Canadian Grains Analyst
Friday, December 19, 2014 10:23PM CST
Thursday, December 18, 2014 10:48PM CST
Wednesday, December 17, 2014 11:26PM CST
Editor’s Notebook
Greg D. Horstmeier
DTN Editor-in-Chief
Thursday, December 4, 2014 6:34PM CST
Thursday, November 20, 2014 6:09PM CST
Tuesday, November 4, 2014 7:12PM CST
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN