China's net cereal exports grew 320 percent in the first 11 months of 2007, compared with the same period a year earlier. However, industry observers forecast the growth will slow this year.
The impressive growth for the January to November period was largely a result of price increases on world markets, observers said.
According to the Ministry of Agriculture, in the first 11 months, China exported 9.2 million tons of cereals, up 77.6 percent, and imported 1.44 million tons, down 56.6 percent. The net exports amounted to 7.76 million tons, up 320 percent.
The total cereal exports included 1.16 million tons of paddy, up 7.3 percent, 4.87 million tons of maize, up 85.1 percent, and 2.68 million tons of wheat, up 114 percent.
The total imports included 416,000 tons of paddy, down 34.2 percent, 23,400 tons of maize, and 99,000 tons of wheat, down 83.6 percent.
The net paddy exports were 746,000 tons, up 65.2 percent, while net maize exports were 4.85 million tons, up 88.8 percent. The net wheat exports were 2.58 million tons, up 470 percent.
Observers attributed the arrival reduction to price increases on world grain markets.
They said a decrease in grain yields worldwide caused by unfavorable weather and growing demand for cereals used for bio-fuel production conspired toward continuous price rises.
The mounting prices dampened domestic demand for imports but triggered enthusiasm for exports, they added.
The Ministry of Finance decided to scrap export rebates for 84 agricultural products on December 20 to discourage exports and to ensure the domestic supply of farm produce in the nation where food prices drove inflation to an 11-year high of 6.9 percent in November.
The products included wheat, oat, maize, paddy, rice, broomcorn, soybean and their powdered bi-products.
Observers said prior to the scrapping, export rebates for grain were 13 percent. The move would be conducive to regulating the import and export of grain, and the export growth would somehow slow.