About an hour’s drive outside of Changchun, capital of Northeast China’s Jilin Province, stands the Xinghua Grain Depot, a storage facility capable of procuring 80,000 tons of corn a year. The depot is one of many facilities that the State-owned grain storage company China Grain Reserves Corp (Sinograin) uses to stockpile grain for “temporary procurement and stock” – a reserve-based crop price support mechanism. “The depot can store 20,000 tons of corn, and we are currently holding 11,000 tons,” Zong Guochang, the depot’s director, told the Global Times on June 9. Recently, the depot has been the subject of stricter government inspections, Zong said, ever since State media alleged that several grain depots involved in the price support scheme were selling expired grain under the pretext that it was fresh…Full Article: The Global Times June 2015
- In April 2015, a Sinograin warehouse in Kaiyuan, Liaoning province, and a local government controlled warehouse in Songyuan, Jilin province, were accused of substituting and selling expired grain for fresh grain. As a result, 25,000 MTs of rice was seized in Kaiyuan and 16,000 MTs of grain were seized in Songyuan.
- In 2014, the procurement price for corn in Jilin province was CNY 2.24 (US$0.36) per kg.
- From 2014 to the end of 2015, the Chinese government plans to construct storage facilities with a capacity to hold 50 million MTs of grain, primarily in northeastern and southern China.
- Founded in 2000 and headquartered in Beijing, Sinograin is a state-owned enterprise whose government imposed mandate is to ensure China’s grain market stability and safeguard the country’s national food security. The company has emerged as China’s leading grain storage and transportation company. When initially launched in 2000, Sinograin had a registered capital of CNY 16.68 billion (~US2.01 billion). By the end of 2012, Sinograin had CNY 415.4 billion (~US65.7 billion) in assets.