An amendment to the regulation on grain circulation management will go into force on April 15, according to a State Council decree signed by Premier Li Keqiang. The amendment was passed at the 121st State Council executive meeting on Jan 4, 2021.

The amendment is aimed at boosting grain production, protecting the legitimate rights and interests of operators and consumers, safeguarding national food security, and maintaining orderly grain circulation.

According to the amendment, grain refers to wheat, rice, corn, coarse grain, and the corresponding finished products.

Market entities of multiple types of ownerships are encouraged to engage in grain operations. It is illegal to hinder free grain circulation through unlawful means.

Grain prices are determined by market supply and demand. Enterprises engaged in grain procurement should be filed at local county-level authorities.

Grain procurement should go with notifications about grain varieties, quality specifications, and purchasing prices, and the interests of farmers and other grain producers should not be harmed.

Quality testing is required in procurement to ensure safety. Enterprises engaged in grain storage should be equipped with standard facilities and appropriate conditions. Grain transportation should strictly follow the technical rules and reduce waste.

A quality inspection system should be established to check the grains before they leave the warehouse. Grains should not be taken out of storage if contaminated or below food safety standards.

Grain business operations should steer clear of false reporting in grain storage volumes, adulteration, or fiscal subsidy embezzlement.

The country will strengthen market adjustment through policy-based grain procurement, export and import, and other economic measures, in a bid to maintain the basic equilibrium of national grain supply and demand, and basic market stability.

Grain storage should have central and local systems, as a means to stabilize the grain market and cope with major natural disasters and other contingencies.

The State Council and regional authorities should establish and improve the systems of grain risk funds to support grain storage, and the monitoring and warning mechanism for grain market supply and demand should be improved.

The country should take a slew of measures to encourage the establishment of stable ties between major grain producing and marketing areas, and cultivate grain enterprises with integrated operations, support construction of bases or zones for grain production, processing, and logistics.

A national monitoring system for grain circulation quality and safety should be established and improved.