National Development and Reform Commission Establishes Price Reporting System for Five Oil Companies

After interviewing the two major edible oil giants of COFCO and Yihai Kerry, the National Development and Reform Commission once again stepped up efforts to strengthen the control of edible oil prices.

The reporter was informed that on August 13, the price division of the National Development and Reform Commission called on the five large-scale packaged edible oil companies of the Central Food Group, Yihai Kerry, Luhua Group, Jiusan Oil Group, and Huifu Grain and Oil Group to conduct a conversation and asked the above five companies to establish food. The oil price reporting system regularly submits the ex-factory price, wholesale price, and retail price of edible oil to the National Development and Reform Commission.

Informed sources close to COFCO, Yihai Kerry and other companies disclosed that this edible oil price reporting system will be formally implemented on August 15.

At present, Yihai Kerry, COFCO, and Luhua respectively account for 45%, 15% and 7% to 8% of the domestic small packaged edible oil market, plus Jiusan and Huifu, with over 70% of the total market share. According to the "28" principle, the National Development and Reform Commission managed the above five companies and thus managed 80% of market sales.

On the second day after the NDRC convened the above-mentioned five companies, the China National Grains and Oils Corporation, which operates as a market-oriented operation of China's grain storage, said that “the storage oil of small grain in China’s grain reserves will not rise in price in the near future”.