China's corn stockpiles climb as policy pushes prices higher

A corn stockpiling policy begun in 2008 to raise rural income in China has raised domestic corn prices 40% higher than global prices, pushing authorities to offer export tax rebates for corn starch and similar products of up to 13% even as the corn processing industry expects to consume more of the crop this year than last, Reuters reported, citing the China National Grain and Oils Information Center. The rebate “will be of little help as the industry is unable to export much and has been making losses over the past few years,” said Fan Chunyan, an official at the China Starch Association.