China has raised duties on fertiliser exports in a bid to boost agricultural output and dampen a surge in inflation that has been mainly driven by food prices, state media said Tuesday.
Export duties on nitrogen fertiliser and synthetic ammonia have been raised to 150 percent from 135 percent for the period from September to the end of the year, the China Daily said, citing the finance ministry.
This is the third time in 2008 that China has hiked export tax on fertilisers, including a special 100-percent duty introduced in April.
Despite the steep hike, rising international prices have ensured overseas sales remained lucrative, and fertiliser exports soared 71 percent in the first-half compared with the same period a year earlier, the paper said.
The government has tried to keep domestic prices low, fearing rapidly rising fertiliser prices would dampen farmers' willingness to grow grain, which happened last year.
China's inflation soared to 8.7 percent in February, a near 12-year high, mainly led by surging food prices.
The index has eased back in the recent months, falling to 6.3 percent in July. But that was still much higher than the target of 4.8 percent set by the government at the beginning of 2008.
