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China's central government has recently adopted a new regulation on the management of its central grain reserve, according to a document from the State Council.

The newly-adopted regulations, which became effective Aug. 6, are designed to safeguard the grain reserve's quality and safety, farmers' interests and a stable grain market as well as to enhance the reserve's macro adjustment role.

The grain reserve includes grain and cooking oil kept by the central government and is mainly used for ensuring grain supply and for serious natural disasters and other major accidents, according to the regulation.

Organizations and individuals are forbidden to use the reserve without permission from the central government.

The country will annually rotate 20 to 30 percent of its total central grain reserve based on domestic supply and demand.

The State Council can also use the grain reserve when it considers necessary.

The regulation also urges establishing an early alert system and strengthening the monitoring of the central grain reserve use.

With the help of the regulation, China can effectively keep its domestic grain markets from imbalance by preventing speculation, analysts say.

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