China Grain Reserves Corporation said that two entrusted companies have violated the food acquisition policy by bringing imported rapeseed into temporary food storage. There is no imported genetically modified rapeseed (GM) oil that polluted the state temporary food storage, Beijing News reported.

China Grain Reserves Corporation said on its official website on Oct 28 that since the end of August, they have conducted a full inspection on the implementation of the acquisition policy of rapeseed oil. A company in Hubei province blended 944 tons of imported rapeseed oil into homemade oil and another in Hunan province, 483 tons. These two companies are both entrusted reserves companies.

As a supervision body, China Grain Reserves Corporation itself cannot process the rapeseed oil, so the acquisition of rapeseed oil is entrusted to local food processing companies. Compared with domestic rapeseed oil, the imported rapeseed oil is 1,000 yuan cheaper per ton. The high profit makes some companies take the risk of violating the policy.

"We send inspectors to local companies but it's impossible for them to take on 24/7 inspections on the company. Besides, we don't have the technology to conduct a GM food test at present. So most of the time it relies on the self-supervision of the company," head of the Grain Procurement Department Zhou Yi said.

"There is no such thing as the imported rapeseed oil polluting the state temporary rapeseed oil reserve. And those which were mixed into the local reserve companies have all been withdrawn. The two companies are no longer allowed to participate in future rapeseed oil acquisition for temporary reserves," Shen Hailei from the research department of China Grain Reserves said.

As for the withdrawn rapeseed oil, Shen said that it still can be sold in the domestic market. "Almost all the imported rapeseed oil is genetically modified, which needs to be labeled in the sectors of processing, subcontracting and retail."