China Cancels Control over Fertilizer Prices      

China cancels governmental control over fertilizer prices effective January 25th, the National Development and Reform Commission (NDRC) released on January 24th.
   Prices of fertilizers domestically manufactured and fertilizers imported excluding potash fertilizers will be set by the markets.
   The fertilizer price reform is aiming at promoting the normal development of the fertilizer sector, ensuring fertilizer supply and foodstuff supply security, and protecting the interests of farmers, NDRC says.
   The government steered ex-factory prices of fertilizers based on domestic market with opening retail prices of fertilizers from 1998 to 2003, and had shifted to request fertilizer makers and retailers to get approval for price increases since 2004 in order to calm soaring fertilizer prices and protect farmers.
   However, the country's fertilizer prices have been slumps in the second half of 2008. Till now domestic fertilizer makers are suffering difficulties from low selling prices of fertilizers and insufficient demand before the spring plough season.
  The government-steering fertilizer pricing system is not any more in line with the current fertilizer market situation, insiders comment.
   A NDRC official says prices of fertilizers are unlikely to rise because of the new fertilizer pricing mechanism, as a balance between supply and demand well remains now in general.
   The government will take measures to ensure the supply of fertilizers, such as tariff policy of fertilizer export/import, feasible off-season fertilizer reserves, the official adds.