China expects stable price for fertilizer products and balance between supply and demand in 2006, Thursday's Economic Information Daily cited authoritative source as saying.

According to the State Development and Reform Commission (NDRC), China will take further measures to stabilize fertilizer production and control fertilizer exports to guarantee market supply and price stabilization, NDRC said.

China will continue to offer a favorable electricity price for fertilizer production and exempt urea products from paying added value tax, the source said.

In addition, the country stop the tax rebate policy given to exports of urea and phosphate fertilizer products.

The measures, which also include a maximum price limit and restrictions on trading profits, aim to stabilize fertilizer price and safeguard farmers' interests.

The Chinese government is paying close attention to improving the life and production of farmers. In February 2006, the Chinese government issued a major document advocating construction of a new socialist countryside.

The document sets out 32 measures that will benefit farmers, including promoting modern agriculture, increasing farmers' income and improving rural infrastructure.

Source: Xinhua