Possibly Open Potash Fertilizer Price   

The National Development and Reform Commission (NDRC) has recently proposed a preliminary scheme for eliminating supervision on potash fertilizers price and offering subsidies to farmers. It means that the price of potash fertilizers set by the government will be formed by the domestic/international market. According to experts, competent departments have taken a cautious attitude towards the reform to the prices of potash fertilizers as it is related to agricultural sector and farmers.
    China now implements a market-formed chemical fertilizers price mechanism supervised by the government. Such a price system is faced with greater challenges today. The government departments are becoming more and more difficult to control prices of fertilizers. Neither farmers nor producers are willing to accept.
   "The output of potash fertilizers produced in China is insufficient. The import amount accounts for around 70% of the total consumption in China. The price of potash fertilizer imported is by the international market. Therefore, it is feasible to select potash fertilizers as the start for the fertilizer price reform", said analysts.
   A market-set price of potash fertilizers is surely favorable to fertilizer producers. The price of potash fertilizers in the international market is rising in 2008. The CIF price of potash fertilizers imported is around RMB5 000 per ton whereas the selling price of domestic potash fertilizer is only RMB3 700 per ton now. Once the price of potash fertilizers is linked with the international market, the ex-factory price of potash fertilizer in Chinese market will be much higher than that of today.
   The market-geared price of potash fertilizer is a trend in China, but the specific time for the government to loose the price control is yet uncertain.