THE government plans to sell rice and wheat from State reserves to animal feed producers who are coping with high corn prices, which have soared more than 20 percent in some areas this year amid tightening supplies, Reuters quoted three sources familiar with the matter as saying yesterday.

China may offload about 10 million tons of rice in the first batch of sales, according to one of the sources. “The government is doing this to check corn prices,” said the source who was briefed on the plan.

The plan to sell stocks from reserves comes as Chinese corn prices hit five-year highs and inventories dwindle following years of government efforts to whittle down a previously massive corn stockpile.

Physical corn prices in Harbin — China’s top corn province — hit 2,110 yuan (US$301.69) per ton Monday, up 23 percent this year, and highest since September 2015.(SD-Agencies)