Permits for exports of grain flour

CHINA, the world's biggest grain producer, has started to curb overseas sales of milled grain flour by issuing export permits, the latest in a series of measures to boost domestic supply and curb food inflation.

The changes, effective yesterday, will apply to flour milled from grains, including wheat, corn and rice, the Ministry of Commerce said in a statement on its Website yesterday.

China is stepping up measures to control inflation after food prices jumped almost 18.2 percent in November, spurring an 11-year high jump in the consumer price index. It has begun to tax grain exports after earlier removing previously set incentives, Bloomberg News said.

"This is another important step to stabilize" domestic grain supply, the ministry said. "This policy is temporary and complies with regulations set by the World Trade Organization."

The period for which the quota is in effect may depend on changes in local markets, the ministry said.