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      Fire details cast shadow over COFCO

      2013-06-08 15:53 Global Times     Web Editor: qindexing comment

      A recent fire at a grain depot run by China National Cereals, Oils and Foodstuffs Corp (COFCO), China's largest processor and supplier of agricultural products, has reportedly sent some 1,000 tons of grain up in smoke.

      At first glance, the conflagration looks like an accident. But under further scrutiny, signs of callousness on COFCO's part raise questions about its own culpability in this matter.

      According to reporting done by China Network Television, the depot which caught fire was designed to hold no more than 76,000 tons of grain. Yet, at the time of the blaze the depot in question had been packed with 147,000 tons. Why was this depot filled to nearly twice its capacity while many regional depots are often short of grain? The reason is simple: subsidies. Under current regulations, depots with more than 71,000 tons of grain are eligible to receive subsidies of 6.1 million yuan ($994,148) every year.

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