China imposes flour export quota to ensure domestic supply
Concerns about sufficient domestic supplies of wheat, corn and rice flours have led the Chinese government to impose an export quota on this commodity Tuesday.
According to Chinese news service Xinhua, the Ministry of Commerce will administer the quota through an export permit policy.
On Sunday, China's Ministry of Finance announced a new export tax on wheat, corn, rice, soybeans and other processed grains for 2008, a week after the country decided to do away with tax rebates for grain exports. The export tax rates will range from 5 percent to 25 percent and cover 57 types of grain and grain products, Xinhua reported.
China is concerned that rising demand for flour and other grain products in the international markets may lead to costly domestic shortages.