The National Development and Reform Commission (NDRC), China’s macroeconomic regulator, announced new regulations related to grain which will go into effect on January 1, 2023.
The new law, Administrative Law Enforcement Measures for Grain Circulation, lays out 25 different regulations and penalties.
Most of the violations are fairly routine, for example, regulations include grain buyers are required to pay sellers within 30 days of purchase, grain businesses must follow a range of facility safety and grain inspection rules, and companies must not misrepresent grain grades or quality.
Some more notable aspects include punishments if companies fail to deliver government stockpile grain for more than three days or adulterate the grain. There are also regulations related to “policy-restricted grain” along with related penalties. In some government auctions, such as wheat auctions, flour millers are legally barred from reselling the grain reserves that they purchase and are required to use the wheat as part of their operations.
The new regulations replace two different sets of regulations issued in 2004 and 2005 which were overseen by many different bureaus. The new law is set to consolidate regulations in the grain business and set more clear oversight amid increasing worries about grain security.