ChinaBean Association said that edible oil companies "kidnapping" NDRC oversupply still need to increase prices

Hexun News On August 1, Jinlongyu brand edible oil under the Yihai Kerry Group announced a price increase of 5%. The products include soybean oil, vegetable oil and blend oil. Yihai Kerry also stated that the price increase has been Passed the approval of the National Development and Reform Commission. In response, the head of the Development and Reform Commission's Price Division said on the 4th that there is no factual basis for approving the price increase of Yihai Company. Edible oil is a market-regulated commodity and there is no “limit order” to say, let alone approve the price increase application.

"This is the company in the 'kidnapping' Development and Reform Commission, is to use its strong position to raise prices, while deducting responsibility on the government." Liu Dengao, full-time vice president of the China Soybean Industry Association.

Liu Denggao made this judgment on the basis that China imported 54.8 million tons of soybeans in 2010, a year-on-year increase of 28.8%. “But domestic demand does not have such a large increase. Actually, companies have a large backlog of raw materials and are in a state of oversupply. With the price hike, the consumer has become a fisherman."

In fact, soybean imports in the first half of the year did not continue to grow as the United States expected. Data show that from January to June this year, China's total imports of soybeans have reached 23.71 million tons, a decrease of 2.09 million tons over the same period last year, a decrease of 8.1%. In July, the import of soybeans to Hong Kong amounted to approximately 5.3 million tons, while the imports of soybean port stocks remained approximately 6.6 million tons, and distribution prices began to weaken.

“Some soybean traders have imported soybean financing through soybean credits. They have used the appreciation of the renminbi and private lending channels to earn high profits. However, excessive imports have created a backlog, which has caused soybean prices to begin to decline, and is now ready to rise through edible oil. The price means to digest it." Liu Denggao said.

In mid-July, the edible oil companies released the wind through the media. Under the influence of the “price limit order”, the company has been in a state of loss for several months, losing an average of 200 yuan per ton of imported soybeans, and therefore decided to slow production. At the same time, it would rather reduce the production and production suspension by allowing the backlog of goods to pay for demurrage charges in the port.

“Now it seems that they have achieved their goals. They have increased their prices by reducing supply, and passed public grievances on to the government,” said Liu Denggao.