USEUROPEAFRICAASIA 中文双语Français
Opinion
Home / Opinion / Opinion Line

State-owned companies can better mind the stores of grain

China Daily | Updated: 2017-05-11 07:54

State-owned companies can better mind the stores of grain

People check on plants in an eco-farm in Nantong,Jiangsu on August 7, 2016. [Photo/IC]

OVER 1.6 MILLION TONS OF GRAIN RESERVES in Central China's Henan province have reportedly spoiled after being stored for seven years. Nanfang Daily commented on Wednesday:

The colossal waste of grain is lamentable and could have been avoided. The grain was purchased in 2010 by a local unit of the China Grain Reserves Corporation, or Sinograin as it is known. Some of it was later deemed substandard and stored locally in accordance with relevant laws, said Sinograin, which planned to sell the unqualified grain to fodder companies and industrial alcohol makers.

The grain storage company, however, said Sinograin did not pay the storage fee and refused to give the grain back until last month when the local court intervened.

Disputes over interests can happen between storage companies and the State-owned food giant, but the latter has the responsibility to avoid any unnecessary waste. Sinograin has good reason to cooperate with private storage companies, as the increase in grain reserves has fallen behind the annual increase in harvest, and many warehouses do not have adequate facilities to keep the grain from deteriorating fast. It is estimated that around 35 million tons of grain is lost each year.

Sinograin must choose qualified, reputable grain storage companies. The official response to the recently exposed waste of grain has been a draft regulation issued by the State Administration of Grain that stipulates contracted grain storage companies should be either State-owned or State-controlled. That the Henan company defied the court verdict ordering it to ship out the grain it had in storage, to some extent, has something to do with its private ownership.

Another question worth asking is how did Sinograin's local unit fall out with the storage company. The State-owned enterprise receives 70 yuan per ton ($10) for grain storage every year. The contract storage fee was 50 yuan per ton, so Sinograin still made a handsome profit. The dispute shows that both Sinograin and the grain storage companies need to be better supervised by the State Administration of Grain.

Most Viewed in 24 Hours
BACK TO THE TOP
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US