CHINA will temporarily double export duties on fertilizers and related raw materials to guarantee domestic supply for farmers, according to a statement by the Ministry of Finance yesterday.

The new rule will run between April 20 and September 30, the peak season when grain and other staple food are grown.

"Since March, China has entered the peak season for consuming fertilizers. With the increasing prices of energy and food on the global market, the price gap between domestic and overseas markets is widening and exports of fertilizers are rising quickly," said the statement.

"To ease the pressure of price rises on the home market due to faster export growth and ensure domestic supply, the State Council decided to increase the export duties on fertilizers and related products by 100 percentage points."

Urea exports

The tax will increase to between 100 percent and 135 percent after the rule comes into effect.

In the first two months, China's export of urea soared 250 percent to 1.71 million tons and overseas shipments of some phosphate fertilizers more than tripled.

The temporary rise in duties is also meant to slow the production of nitrogen and phosphate fertilizers, the statement said.

"Most fertilizers are sufficient in volume. So if we can effectively control exports, we can ensure the fertilizer needs for spring cultivation and curb rising fertilizer prices in the domestic market," it said.

China has been fighting increasing inflation pressure since the second half of last year.

The consumer price index, the main gauge of inflation, hit 8 percent in the first quarter this year.