China adds 100% export duties on fertilizers

China plans to impose an additional 100% export duties on exported fertilizers and related raw materials from April 20 to September 30, the Ministry of Finance said on Thursday.

It is the fourth time that the Chinese government increased the fertilizer export duties this year, with an aim to ensure domestic supply and keep the prices stable amid soaring demand during the spring plough season.

Officials with the Ministry of Finance noted that the significant growth in fertilizer exports caused by the low tariffs amid the surging price of foodstuff in the global market has exerted great pressure on the domestic fertilizer market. They expected that the new taxes could curb the price hike of fertilizers domestically.

Meanwhile, new taxes also can slow the production of nitrogen and phosphate fertilizers, which is meant to promote the government's effort to reduce pollution and the use of resources, according to sources.

Official statistics showed that China has exported 1.71 million tons of urea, a fertilizer widely used in rice and other crop production, in the first two months this year, representing an increase of 250% year on year.