During the twin congresses, three representatives from the National People's Congress submitted a scheme that ultimately became Suggestion 6265 of the fifth meeting of the 10th National People's Congress, which chiefly called for the opening up of the potassium fertilizer industry. On September 30th, because they were still unsatisfied with the Ministry of Commerce's responses, three representatives of the NPC petitioned the Standing Committee of the NPC, which gave an official response. But sources say that the issue was still unresolved.

Mysterious Prices, Subtle Negotiations

China's potassium fertilizer imports are the highest in the world, and although prices increase every year, the negotiated prices are industry secrets. Virtually no one outside of Sinofert and the Resource Group know what the prices are, including those firms allied together for negotiations purposes.

According to the letter submitted by Zhou Renfu and the three other NPC representatives to the Standing Committee of the NPC, "The alliance has been strong for three years, and except for Sinofert and the Resource Group, all other negotiating parties, including controlling government ministries, have yet to look once at a potassium fertilizer import contract. No one knows the true costs."

"We have no obligation to publish the negotiated prices," says one spokesperson for Sinofert. One producer of fertilizer suggests that "they don't want us to go and negotiate because then we'll know the prices-- their secret."

Potassium fertilizer is a considered a state-managed import. But the tenth line in Article 27 published by the Ministry of Foreign Economics and Trade in 2002, entitled, "Crude Oil, Refined Oil, and Chemical Fertilizer Imports Management Pilot" says, "Within ten days of the completion of each quarter, nationally operated firms working in foreign trade must report on the market environment, purchasing price, sales, and other information to the Ministry of Foreign Economics and Trade and the State Commission for Economics and Trade."

According to information from a Canadian producer and others in the industry, this year saw a ton of potassium fertilizer going for ＄50 or approximately 400 yuan on the international market. This is a far cry from the 2,350 yuan that it is sold for on the domestic market. And international prices are expected to rise in 2008, likely bumping domestic ones even further.

Zhou Furen estimates that if other firms are allowed to enter the market, each ton will be at least 300-400 yuan cheaper.