Center

Strict watch on stale grain sales

By Liu Chang (China Daily)
Updated: 2006-12-25 09:08

China is auctioning its wheat reserves for the sixth time since last month in Zhengzhou, the capital of Central China'sHenanProvince, said sources with the China Grain Reserves Corporation.

The corporation said it purchased 40.7 million tons from June to September to fill state reserves and to reinforce the country's ability to regulate wheat prices.

A spokesman said about 500 to 600 grain processing firms took part in the auction and supply and demand has generally remained steady.

The government will continue to intervene in the market periodically by selling grain reserves. The demand is expected to increase with the approach of the Chinese Lunar New Year.

Food safety has become a problem this year.

Poisonous substances were found in honey in Central China'sHubeiProvince, lard in East China'sZhejiangProvince, pork and fish inShanghai, and salted ducks' eggs in North China'sHebeiProvince.

Experts said that China lacked an effective supervision network covering production, sales, storage and transportation of food.