Corn: "Analysts warn of fast expansion of China’s ethanol gas plan"

From the Asia Times:

Current policy will create long-term demand for corn, and the depreciation of the dollar will also inevitably exacerbate the rise of food prices

According to a recent plan jointly released by the National Development and Reform Commission, the National Energy Administration, the Ministry of Finance and 15 other ministries, China will implement the use of ethanol-added gasoline nationwide by 2020 while targeting large-scale production of ethanol and developing advanced biofuel technologies by 2025, Yicai.com reported.

Analysts have shown great confidence in the sector: National Automotive Ethanol Promotion Leading Group Specialist Joe Yingbin told Yicai that it is currently the best time to expand the scale of ethanol production.

“First of all, China has a huge amount of corn stocks,” Joe said. “Secondly, international crude oil prices have rebounded — it will improve the business profits of ethanol fuel. Thirdly, the import tax rate of ethanol fuel has been raised from 5% to 30%, effectively inhibiting the impact of imported products. These factors show a great reason to expand.”...

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