|Policy status:||In Force|
|Policy Type:||Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Economic Instruments>Fiscal/financial incentives>Tax relief, Policy Support, Policy Support>Strategic planning|
|Agency:||Ministry of Finance, COFCO (China National Cereals, Oils, and Foodstuffs Corporation (COFCO)|
Since 2002, bioethanol producers in China have benefitted from subsidies, as well as tax reductions or exemptions of VAT or import duties. These reductions and deductions have totalled approximately CNY 190 million, and the Ministry of Finance has provided CNY 2 billion in subsidies to cover losses.
The subsidy in 2006 was CNY 1373 per MT of fuel ethanol produced. Starting in 2002, most fuel ethanol produced was grain-based. However, a moratorium on such ethanol plants was imposed as of December 2006 by the NDRC and Ministry of Finance, lasting for a year and a half.
The government's policy was to substitute non-grain ethanol for grain ethanol, and not to compete with food requirements.
In early 2008, a consultancy undertaken for the NDRC concluded that development ethanol refining capacity based sweet sorghun, cassava and sweet potato in Hubei, Hebei, Jiangsu, Jaingxi and Chongqing was promising. These provinces are now targeted by the NDRC for construction of sweet potato and cassava fuel ethanol plants.
A major food organization in China profits from these subsidies and has grown tremendously.
China National Cereals, Oils and Foodstuffs Corporation (COFCO), is one of the main companies that handles manufacturing and production in the Chinese ethanol industry.
Last modified: Mon, 22 May 2017 10:54:54 CEST