Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

China grain reserve fraud poses threat to national security

Posted by on 2015/04/28. Filed under China,Headline News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

Boxun has received news from food industry insiders that the national grain storage system faces serious shortfalls. In new grain procurement, old grain is classified as new grain and the difference in price is embezzled. In the national grain reserves, at least of 1/3 of the grain has problems and isn’t edible. China’s food crisis and national grain reserve corruption are extremely serious. If there is unusual weather or an extended drought or other natural calamity, China is at great risk of a large food crisis.

On Monday April 20, 2015, CCTV’s “News Studio” show broadcast Liaoning grain merchant Zhao Lijun’s revelation that Dalian city’s Fort Qinyun Center was selling moldy rice as “new rice.” On Friday April 17, 2015, CCTV news programs began reporting that Fort Qingyun Center grain depot in Kaiyuan City, Liaoning Province, and Songyuan City, Jilin province were passing off rotting grain as new grain, exploiting the nation’s grain subsidy problem.

According to insiders, this kind of situation exists all over the country. These insiders say a similar problem exists with the national strategic grain storage reserve in Guizhou, Hunan, and Guangdong provinces, and the amounts are enormous. Grain levy departments all have annual quotas. Annual bonuses depend on meeting annual quotas. In fact the annual quotas are impossible to meet. There’s usually a shortfall of 40 percent. The way to make up the shortfall is to buy others’ old grain. This is transferred from other grain storage facilities. The difference in price between the old and new grain is ¥200-400 per ton or more. This is already an open secret of the central grain reserve system. Reports indicate that a national grain reserve official in northeast China buys old and inferior grain at the government subsidized price, stocks new rice and sells old rice. It’s said that Liaoning, Jilin, and other grain repositories and grain merchants collaborated to replace new rice with old rice, fraudulently obtaining the national subsidy, making ¥700 on every ton. Media previously reported that Hunan Province’s Civil Affairs disaster relief grain depot smuggled 800 tons of rice from Vietnam in one day.

The sources said the granaries don’t make money on the acquisition of new grain, so they don’t accept new grain. Farmers can’t sell their grain at suitable prices, resulting in an increasing amount of land being left fallow by farmers. Urbanization is also resulting in more land being used for development instead of farming. Media says that China’s total annual food statistics increase according to a plan. Data shows a bumper harvest that is only on paper. China’s pursuit of a GDP-growth development policy has resulted in large-scale environmental degradation, per capita arable land decreasing, heavy metal pollution getting worse, desertification and despoliation increasing, all exacerbating China’s food crisis.

According to a report in “China Economic Weekly,” more than half of China’s provinces aren’t self-sufficient in grain. Over the past ten years China’s dependence on imported grain doubled from 6.2 percent to 12.9 percent. China’s people are increasingly incapable of feeding themselves. Boxun previously reported in July 2012 that unscrupulous traders on the border of Guangxi province were smuggling a large amount of inferior grain from abroad into China, a clear signal of China’s grain crisis.

Pic: On the border between China and Vietnam, warning to smugglers.

comments powered by Disqus