Last week a fire ripped through a grain storage center in Heilongjiang Province, engulfing roughly 1,000 tons of grain.

Many should be familiar with the center's operator, China Grain Reserves Corporation (Sinograin). This State-owned enterprise (SOE) was entangled in corruption and embezzlement cases in 2010 and 2011. This company has long had a monopoly over China's grain market, which its managers have abused in the past for their own gain.

In 2009, for example, the grain held in storage by the company equaled some 35 percent of China's total grain consumption that year - well higher than international standards. Sinograin used its inventories to jack up grain prices within the market. And as a SOE, Sinograin officials knew that the government would cover their losses if their grain stores were left to rot.

The author is Ye Tan, a commentator.