AreaChina (Mainland)

Commodity GroupOilseeds, oils and meals

CommodityRapeseed

Date01/05/2013

Policy CategoryStocks

Policy InstrumentState reserves

Descriptionate-owned firms to purchase 5 mln tons of rapeseed from the country’s forthcoming crop.

NotesCHINA – state reserves of rapeseed: The government has directed state-owned firms to purchase 5 million tons from the country’s forthcoming rapeseed crop (which is forecast to amount to 14.1 million tons) for public storage. State reserves are maintained with the objective to protect local farmers and encourage domestic production. The official procurement price has been set at Yuan 5 100 per ton, two percent higher than last year’s. The government’s procurement policy is said to have driven domestic rapeseed prices above the prevailing international price, which could induce crushers to raise their overseas purchases.