In Jan. 2015, Vice Minister of the Ministry of Agriculture of China, Yu Xinrong, said that the growth of potato to be a staple grain should be guided by science and technology. As a large downstream industry of potato, potato starch will be affected in terms of the following aspects:
Firstly, potato can be used as a staple grain thanks to its high starch content. In the future, new potato varieties with higher output and higher starch content will be cultivated, which makes the supply of raw material of potato starch more sufficient and improves starch yield rate of potato in local regions of China. In another word, less potato will output more potato starch, compressing producers’ production cost.
Secondly, after seeing the price fluctuations of the three staple grains, corn, wheat and rice, it can been predicted that after potato becomes another staple grain, its price won’t change too much, which means that potato starch price will fluctuate within a reasonable range, bringing more stability to the sale of producers and application of customers.
Pure potato starch will be promoted after potato becomes a staple grain. Currently, the price of pure potato starch is USD978/t while that of wheat powder is only USD546/t. Therefore, its price has to be lowered down to an acceptable level for consumers.
However, to ensure their enthusiasm to plant the crop, which means that potato price may maintain at a high level, equaling high price of potato starch. In recent years, due to the low price of modified cassava price, some of potato starch’s market shares have been snatched by it. Thus, if potato price goes up again, there will be less market demand for it, putting suppliers in a difficult position. To solve this problem, the government is supposed to offer subsidy for potato growers
（More detailed market intelligence in News_ China Crop Processing Monthly Insight. For sample and subscription, please contact your account manager or mail to firstname.lastname@example.org）
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