China spends 1.2bn on grain storage

13 January 1999

China spends £1.2bn on grain storage

CHINA plans to spend £1.2 billion revamping its grain storage facilities after finding that nearly 15% of last years 490m tonne grain harvest was stored outside.

The open-air storage of grain meant supplies were subject to attack from rats, fires and rain.

The problem is one of a number of problems to emerge in the state management of Chinas farm produce.

Auditors last year found that £15bn had gone missing from state grain purchasing funds.

It was subsequently discovered that the Governments grain agency managers had sold produce below cost and diverted the money into private business interests.

• Financial Times 13/01/99 page 34