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The National Development and Reform Commission (NDRC) has sent special teams to inspect major fertilizer producers and traders in the country in order to curb fertilizer prices and safeguard farmers' interests.

 

The NDRC is examining six large fertilizer producers in Liaoning, Henan, Shaanxi, Fujian and Shandong provinces, as well as three national fertilizer traders including China National Chemicals Import and Export Corp., its sources announced on Friday.

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The NDRC is trying to find out whether the factory price of fertilizer producers exceeds the maximum price limited by the government, whether overcharging exists and whether the profit rate of traders is too high.

 

The NDRC will punish those companies breaking rules so as to firmly safeguard interest of farmers, it said.

 

The price of fertilizer directly affects the income of farmers and grain production. By the end of 2005, the urea retail price across the country had risen 31 percent from two years ago, and insiders expect the fertilizer price to go up again during the spring.

 

(Xinhua News Agency March 25, 2006)