The import and export policy, industry policy, purchase and audition policy profoundly influence the corn deep processing industry and indirectly influence requirements for corns. In China, influences caused by industry policy come ahead of import and export policy and purchase and audition policy. Developing direction depends on industry policy; supply and demand of raw materials and products are influenced by import and export policy as well as purchase and audition policy.
As it develops, corn deep processing capacity has reached 77,500,000t at the end of 2008. It is continuously increasing no matter in starch or alcohol industries.Wich the increase of capacity, the production is of big potential with the dynamic of margin.
From analysis of the import and export policy influence, it is not greatly influential though tariff of import and drawback of export is adjusted. Only administrative methods such as import and export quota limit do work. For example, in 2008, corn price in foreign countries doubled that in China. Though tariff is adjusted to limit the export of corn starch, the exports are still big in 2008 due to the big margin. However, it is different to corn export as quota system is implemented. Corn is restrained to export in China that quota license and state trade management are used in China,which means corns are traded by order of state and export quota license should be provided. Corn import is the same that state controls the right of determination. Margin determines the deeply processed products. It is largely influential if drawback of export is canceled or tariff increases and decreases.
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