Business

Shares of domestic potash producers advanced yesterday on speculation the government may lift price control on the nutrient that is used to boost crop yields.

The government has always been looking at lifting the price control although there is no timetable to do so, the China Securities Journal reported yesterday, citing a source at the National Development and Reform Commission.

Fertilizer prices are regulated in China to shield the farming industry, leaving some producers unprofitable in the face of surging raw material costs.

The newspaper said the NDRC has proposed that the government give direct subsidies to farmers in return for lifting the price control on potash. The move to lift price control could lead to the government easing price curbs over other fertilizers in the future, analysts said.

Shares of potash producers rose yesterday on the news while the Shanghai Composite Index tumbled 3.43 percent.

Xinjiang Guannong Fruit