China slashes corn ethanol subsidies to curb import pressures

In China, the government has slashed corn ethanol subsidies to 500 yuan from 1,276 yuan per ton last year as it works to reduce production from corn, saving it for animal feed. The USDA says Chinese corn imports may quadruple during 2011/12 as a result of increased demand and reduced corn supply. Between 4 million and 5 million metric tons of corn goes to ethanol every year, producing about 1.35 million tons of ethanol.