China's grain guardian under scrutiny for decaying stockpile

Decayed wheat belonging to the China Grain Reserves Corporation (CGRC) stored in a warehouse in Nanyang, central China's Henan province. [Photo: Chinanews.com]

The China Grain Reserves Corporation (CGRC) has sent a special working group to the city of Nanyang, Henan province in central China, following media reports that over 16,000 tons of wheat was left to rot for around 3 years in a local warehouse.

Online media reports contend the Henan branch of the CGRC signed a contract with Jinsuo Co., a local company in Nanyang, to store 16,291 tons of wheat in 2010.

The CGRC in Henan says after testing the wheat in 2014, it was determined it was not up to national food standards, and was subsequently sold to fodder and industrial alcohol companies in June of that year. But the CGRC claims Jinsuo Co. refused to transfer the grain.

Jinsuo Co. does concede it refused the transfer order, saying it had not received the money it was promised in the original contract.

The CGRC in Henan was finally able to secure a court order only last month to force Jinsuo Co. to release the grain.

An article on www.cjn.cn, the official website of Changjiang Daily commented that CGRC as a state-owned enterprise should be blamed for not solving the commercial disputes in time; and the local grain authority in Henan province should also take responsibility for the incident which led to a huge loss of national assets.