LONDON, July 6, 2016 /PRNewswire/ -- In Jan.-April 2016, China's import volume of potato starch reported a YoY fall, affected by the falling domestic market prices of starches.
The Environmental Protection Tax Law will likely be released in 2016, replacing the current system of pollution discharge fees. Thanks to this, outmoded potato starch enterprises will be eliminated from the industry faster, which will change the industry pattern.
In Q2 2016, China's potato starch market price continues rising, mainly due to the rising price and reducing inventory of potato. Thanks to this, manufacturers' profit gets improvement. However, it is predicted that the price may reduce in the coming future, affected by the sufficient potato supply.
China issued the 13th Five-year Plan for the Potato Industry (2016-2020), with some goals being decreased when compared to the 12th Five-year Plan. As promoting potato as staple food involves lots of problems like R&D and storage, China should be more rational when setting goals for the industry, such as the planting area of potato.In May 2016, the 13th Five-year Plan for Potato Industry (2016-2020) was issued, which is the first document about the potato industry after China announced to promote potato as staple food in Jan. 2015. Some goals about planting area and yield of potato as well as the output of potato products were updated and revised in the document. It can be seen that China holds a more rational attitude towards promoting potato as staple food.
In Q2 2016, China's potato starch market continues showing an upward trend. The rising price boosts the profitability of manufacturers. However, as the new-harvested potato will enter the market in later period, it is predicted that the potato starch price will reduce.
Affected by the low market prices of competing products, import volume of potato starch reported a YoY fall in Jan.-April 2016.
What's more, the Environmental Protection Tax Law is expected to be issued within 2016. At that time, potato starch producers may be confronted with higher production costs, and will be forced to transform and upgrade.
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