Chinese authorities have asked four major state-owned grain enterprises not to make additional purchases amid the pressure of the current increase in grain prices, "China Business" reports.
The country's four main grain-buying enterprises are China National Cereals, Oils and Foodstuffs Import and Export Corporation (COFCO), China Grain Reserves Corporation, Chinatex Corporation and China Grain and Logistics Corp.
The report says that as the drought has continued to wreak havoc in north China's wheat-growing regions since the end of 2010 and may affect this year's grain output, they have received an order from their superior departments to stop purchasing grain.
They "ordered us not to purchase grain anymore, because the move could help moderate grain prices amid the excessive rise in grain prices," said an unnamed employee from COFCO.
The report also noted that the expected hike in grain prices prompted many enterprises in China to begin buying grain early before the Spring Festival holiday.
A report in "The Jinan Daily News" cited an unnamed insider who said authorities might adjust grain prices through a tariff policy if domestic grain prices increased greatly.
"As far as I know, the customs duties on imported soybean, most of which rely on imports in China, will decrease from 3 percent to 1 percent," the insider said.
Last November, the National Development and Reform Commission (NDRC), China's top economic planner, issued a series of policies to curb price hikes of certain commodities, especially grain.
