China slapped massive tariffs on fertilizer exports on Thursday in a bid to control rapidly rising domestic agricultural costs and inflation, and above all to ensure it grows enough grain to feed its 1.3 billion people. Beijing's 100 percent-plus tariffs on some fertilizer exports should temper domestic costs but may drive up prices in world markets that depend on China's supplies, the latest in a series of commodities-related protectionist moves around the world that risk fuelling rather than cooling global food costs. China's anxiety is greater than most - it is struggling to grow enough corn and wheat to feed its multiplying urban eaters, and fears higher costs of fertilizer, diesel and labor might discourage farmers from planting grains, thereby raising feed costs for meat breeders and exacerbating inflation. Inflation in China ran at 8.3 percent in the year through March, nearly double the government target for 2008, supported by strong grains and meat prices. China is in the peak season for fertilizer demand, since spring planting has been under way since March. Even so, sharply rising international fertilizer prices have caused exports to surge, the Ministry of Finance said on Thursday. “The overly fast export rise increased pressure for domestic fertilizer prices to rise, and also caused tight supply of certain fertilisers in some regions,” the ministry said on its website, www.mof.gov.cn. The tariffs on fertilizer exports will rise by 100 percentage points, to range from 100 percent to 135 percent, effective from April 20 to Sept. 30. Exports of urea increased by 250 percent in the first two months from a year earlier to 1.71 million tons, while exports of monoammonium phosphate and diammonium phosphate rose by 280 percent and 130 percent, the ministry said. __
