China is to put limits on the use of grain and edible oils as raw materials for any non-animal-feed projects such as alcohol and biofuel in an effort to secure grain supplies.
The government will also limit corn starch projects with processing capacity of less than 300,000 metric tons a year, and eliminate those projects with annual capacity of less than 100,000 tons, the National Development & Reform Commission said in industrial guidelines published on its website.
About one third of China's corn is used to make non-feed products ranging from ethanol to starch and sweeteners. China has seen unprecedented expansion of corn processing industries, with combined annual capacity rising to almost 70 million tons in the marketing year ending Sept.30, Shang Qiangmin, director of the state-backed China National Grain & Oil Information Center, told an industry forum recently.
These industries are expected to consume about 50 million tons of corn in the current marketing year, or about 29% of total corn output in the 2010 calendar year, the CNGOIC said.
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