Whistleblowers reporting food safety violations in Shanghai will be offered a cash reward of up to 200,000 yuan ($32,000), under a regulation that took effect on Jan 20.

People offering tips on food safety problems will receive a cash reward worth 2 percent to 5 percent of the total value of the goods involved in the case, and the minimum reward will be 500 yuan, according to the regulation issued by the Shanghai Administration for Industry and Commerce.

It encourages people to report violations such as illegally producing, selling or adding banned materials, and using excessive food additives. Producing and selling gutter oil — illegally recycled cooking oil — is also targeted.

Whistleblowers’ personal details will be protected and the rewards kept secret. A total of 168 whistleblowers were rewarded in 2012.