UPDATE 2-China's Sinograin and COFCO form JV to operate state grain reserves
BEIJING, Aug 18 (Reuters) - China's state stockpiler Sinograin and top state-owned grains trader COFCO have set up a joint venture to manage the country's huge grain reserves, Chinese broadcaster CCTV reported on Thursday.
The move is part of the state's efforts to reform the grain reserve system and better ensure food security, said the report.
China holds the world's largest grain reserves, which it says are critical to ensuring food supplies for the world's biggest population.
However numerous officials have been fired over alleged corruption at grain warehouses, while the former head of its national reserves bureau is under investigation for suspected severe violations of law and discipline.
The new unit will bring together Sinograin's reserve management and Cofco's warehousing resources, said the report, creating a single entity with responsibility for the nation's grain stocks.
The joint venture, called the China Enterprise United Grain Reserve Co. Ltd, will be 51% owned and controlled by Sinograin. (Reporting by Dominique Patton; Editing by Bernadette Baum and David Holmes)
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