:. Food Industry News


China to Scrap Corn, Starch, Flour Export Tax

Source: Reuters
14/11/2008

Shanghai, Nov 14 - China will scrap export taxes on corn, corn flour and corn starch while reducing export taxes for wheat and rice as well as wheat flour and starch to boost exports and support domestic grain prices, the finance ministry said.

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China will scrap a 5 percent export tax on corn and soybean and 10 percent tax on corn flour and starch from Dec. 1, the ministry said on its website.

Export taxes for wheat and rice were cut to 3 percent while flour would be reduced to 8 percent.

The changes come at a time of weak domestic demand coupled with a bumper grain harvest that has led to a glut which Beijing fears will pressure prices and keep farmers from planting next year's crop. China slapped tariffs on exports for a range of grains and grain products this year as it sought to protect supplies when international prices surged.

The export tax for wheat was previously set at 20 percent and wheat flour and starch at 25 percent.



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