It is hoped they can help strike a better balance between ethanol demand and food supply.

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With the growth in the production of non-grain based ethanol, the proportion of corn used in the process will fall from the present 90 percent to 70 percent after 2009, Cao Zhi, a market analysis on ethanol production, said.

However, some experts say the country lacks sufficient support policies to ensure the development of non-grain ethanol production.

Non-grain-based biofuels are currently not allowed to enter the market and their producers do not enjoy the same government subsidies as grain-based product manufacturers, Cao said.

China plans to produce about 6 million tons of ethanol by 2010 and 15 million tons by 2020, as well as 5 million tons of biodiesel.