China Has Loosened the Restrictions on New-Built Capacity of Corn Further Processing in the Last Ten Years

By CnAgri2017-04-26 10:41:35 Print

In the last ten years, corn further processing sector has been the one that is intensively regulated and restricted by the policy. Since 2007, the government has proposed “the priority to feed on the basis of assuring the demand for food” and also restricted the entry of foreign funds. Notice on Management on Corn Further Processing Projects (No. 1017 of 2015) released by the National Development and Reform Commission in 2015 still is the reflection of the attitudes on restrictions on new corn further processing capacity. It rules: according to the principles of elimination, capacity replacement schemes on new corn further processing projects are carried out; besides, corn projects with annual capacity of below 0.3 million MT are restricted, the projects with annual capacity of below 0.1 million MT are eliminated and production lines without technical advantages are phased out.

However, the policies of restrictions on corn further processing sector have been loosened in the last two years. At the end of 2016, the entry of foreign funds into Chinese corn further processing sector was restricted; on April 17th, 2017, Notice released in 2015 was abolished, and then the filling of corn further processing projects is managed by the State Council No.673 as a whole.

It means the barrier to corn further processing sector reduces greatly. Except for fuel alcohol, new corn further processing projects won’t be approved in advance in the future, and will be implemented according to the territorial principle.