In 2015 corn temporary reserve policy regulated the purchase price at 2 yuan per kg

Last weekend, corn temporary reserve price was issued to be 2 yuan per kg, less 0.26 yuan per kg than last year’s highest price, which was also the first decline since the implementation of temporary grain reserves policy. The price went up in the past seven years to protect farmers’ income, but the policy paid more. International price falling down enabling foreign corn enter into domestic market, downstream processing enterprises suffering a lot, and grain stocking pressure and national financial pressure both increasing greatly, made corn temporary reserve policy reformation became a necessity.

Differences between this year’s temporary reserve policy announcement and past years: 1, pubtime is relatively early, and the start time to purchase is advanced to November 1; 2, it is the first decline of purchase price, down by 10% or so; 3, in 2015 quality standards are emphasized: add “color changed grains belong to imperfect category” and “corns under the quality standards are purchased according to local policy and referring provincial governors assuming and food safety local responsibility system”; imperfect grains including more than 2% of musty grains should be used as regulation. The related spending should be arranged by local policy and the short part can be disbursed from grain risk fund. Mildew overweight grains caused by weather in 2013 and 2014 should loosen standards to less than 5%. This year the early announced policy notifies farmers to prepare well grains custody work. Then when the mildew overweight problem appears, the standards will not be loosened again.












From "China Livestock and Feed Weekly Report"