China Lowers Producer Subsidies on Ethanol From Grain
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China, the second-biggest corn consumer, lowered subsidies for producers of grain-based ethanol by more than half in the latest move to curb industrial use and ensure livestock-feed supply.
Producers now get 500 yuan ($79) for a ton of ethanol made with corn or other grain, down from 1,276 yuan last year, COFCO Biochemical Co. said in a statement dated April 16 to the Shenzhen Stock Exchange, citing a Ministry of Finance order. Subsidies on ethanol from non-grain crops such as cassava will be 750 yuan, it said, without giving a previous figure.