(Yicai) Aug. 4 -- China will lift anti-dumping and anti-subsidy tariffs on barley from Australia from tomorrow as they are no longer necessary due to changes in the Chinese market, the commerce ministry said on its website today.

In May 2020, the ministry decided to levy an anti-dumping duty at 74 percent and a countervailing duty at 6.9 percent on Australian barley for five years.

It reviewed the necessity of continuing the tariffs after an application from the China Alcoholic Drinks Association in April. China’s barley supply was not enough to meet domestic demand, so lifting the duties would greatly ease the pressure on malt producers and brewers, the association pointed out.

Global barley production and inventory have dropped since 2020, causing supply tensions, according to commerce ministry data. Barley output was 154 million tons worldwide last year, and may fall to 151 million tons this year.

Australia is the world's third-largest barley producer after the European Union and Russia. It ranks second globally by barley exports after the EU, shipping out on average around 6.9 million tons of the cereal grain annually over the past three years.

China’s beer sector needs 4 million to 5 million tons of barley per year, while between 3 million and 10 million tons are needed for feed production. The country imported nearly 5.8 million tons last year, with anout 89 percent coming from Argentina, Canada, and France, and demand will likely grow in the long run.

Editor: Martin Kadiev