China’s corn-based ethanol fuel threatens food security while crowding the market, state commentary warns

China is facing a corn-supply shortfall that could put it at the mercy of imports, even as domestic output has seen sharp increases in the last couple of years

Beijing has been increasingly pushing to reduce its reliance on external sources of crucial grains, including soybeans

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China’s domestic corn output has dropped in recent years, while import levels have been rapidly increasing since 2020. Photo: Shutterstock

Published: 10:00pm, 16 Jan 2023Updated: 11:35pm, 16 Jan 2023

China must rein in the expansion of processing capacity for corn-based ethanol fuel to ensure that the nation has enough corn to meet its agricultural demands and to reduce its reliance on external sources, according to a recent commentary in state media.

The piece came as China’s top leadership has been repeating calls for food security as they look to feed the world’s most populous country.

More than 60 per cent of the corn China uses goes toward animal feed, and 20-30 per cent is allocated for industrial use, the commentary in the Economic Daily said on Thursday, adding that the rapid expansion of corn-based ethanol fuel capacity is crowding the market and pushing up corn prices by raising demand.

This has a direct impact on the nation’s food security, the piece warns, calling for more efforts to address the corn-supply shortfall.

“The processing of corn-based ethanol fuel must serve the overall situation of national food security,” the commentary said. “The country, with a large population but limited arable land, is always faced with maintaining a fine balance between food supply and demand.