THE Chinese mainland, the world's biggest grain producer, is tightening its export regulations to prevent the resale of food sold to Hong Kong.
Hong Kong importers must register with the city's Trade and Industry Department before seeking to buy grains from mainland exporters, the mainland's Ministry of Commerce said in a statement on its Website yesterday. The grains can't be re-exported, and quotas will be canceled should the rule be violated.
"The relevant authority should issue a license strictly according to the quota allocated by the government and note on the license that the export is only to Hong Kong with no transshipment allowed," said the statement.
Hong Kong importers had to keep clear inventory and sales records that tracked food imported from the mainland, according to the statement.
Controls on food exports started early this year, when the government imposed a temporary quota on the export of wheat, corn and rice products to guarantee domestic supplies.
Hong Kong said on April 8 it was in talk with the mainland about rice supplies after the price of the grain from Thailand surged. The city gets 90 percent of its rice from Thailand.
Panic buying was reported in Hong Kong after the price of rice from Thailand shot up by about 30 percent in the past month. Rice hoarding has also been reported in the southern province of Guangdong, which borders Hong Kong.
Prices of grains have surged to records on a global shortage, prompting Asian government to stockpile and cut exports.
There are 26 Hong Kong importers registered with the city's government, the ministry said. The new regulation will apply to flour milled from grains, including wheat, corn and rice, it said.
Hong Kong relies on the mainland for food supplies, including beef and pork.
Premier Wen Jiabao promised mainland supplies of rice and agricultural products to Hong Kong and Macau on March 31, adding that China, with 40 million to 50 million tons of rice stocks, would not be greatly affected by global price hikes.
But as ties between the domestic and world grain markets rose, it had become more difficult to keep stable domestic prices, said Nie Zhenbang, director of the State Administration of Grain.
Wheat and rice stocks had risen recently, but uneven stock distribution in producing areas and selling regions should be balanced, said Nie.