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Beijing this week summoned top importers for meetings and suggested they halt purchases of barley and sorghum. | Representative photo: Bloomberg
China is asking domestic traders to buy less foreign grains as ample supplies and weaker-than-expected demand weigh on prices and threaten its longstanding policy to support local growers.
Beijing this week summoned top importers for meetings and suggested they halt purchases of barley and sorghum, according to people familiar with the matter. The move, ahead of a forecast bumper grains harvest this year, is the latest effort by China to ease domestic oversupply and bolster local prices.
The Asian powerhouse is grappling with an economic slowdown and waning confidence as the rise in living standards shows signs of stalling. Authorities have increased supervision and so-called “window guidance” on imports of commodities in recent years, hoping to reduce the impact on domestic processors and consumers from large fluctuations in global prices.
Barley and sorghum shipments that have already been booked are not affected, and the new measures would likely impact arrivals from November and into the first quarter next year, said the people, asking not to be identified as they were not authorized to talk about sensitive topics publicly. The majority of currently booked cargoes are for delivery in October and November, they said.
The National Development and Reform Commission, China’s state planner, did not immediately reply to a message seeking comments.
Prices for corn, sorghum and barley in China are all near the lowest level in more than three years. Stockpiles of corn at the nation’s southern ports are close to the highest in two years.
Sorghum imports were at 5.21 million tons over the first seven months of 2024, almost double the volume in the same period last year. US supplies accounted for more than 80 per cent of the total. Barley purchases were 67 per cent higher, with most coming from Australia after Beijing lifted a ban on cargoes.
First Published: Aug 28 2024 | 10:44 PM IST
