Mounting inflationary pressure and public concerns about further price rises have led the government to impose tougher punishments on price manipulators.

The economic planners have warned against manipulating market prices, saying the revised regulation against price irregularities is ready for the approval of the State Council.

"To punish such wrongdoings, we plan to increase the fine," said Zhang Manying, deputy director of pricing supervision department of the National Development and Reform Commission (NDRC) yesterday at an online discussion.

But Zhang didn't reveal the ceiling of penalty in the revised regulation. Currently, the maximum fine is 300,000 yuan (US$39,735) in a single case.

The new regulation, when approved, will impose tougher punishments on industrial associations if they illegally increase prices.

The fresh warning to industry associations comes after the China branch of the International Ramen Manufactures Association was found to have colluded to manipulate prices of instant noodles. The NDRC ordered the association to undo the damage and issue a public explanation on the impact of its action.

Urging them to find a balance between helping member companies to earn bigger profits and protecting the interests of the industry as well as the consumers, the NDRC had earlier said some industry associations had abused the power vested in them by member companies.

Zhang said local pricing authorities should continue efforts to crack down on food producers and sellers who try to raise food prices to an unreasonable level, and urged pricing departments to work hard to stabilize the food market.

The campaign, mainly targeting food manufacturers, wholesale and retail firms, will overhaul prices for daily foods like grain, cooking oil, meat, poultry, eggs and milk.

As prices of consumer goods, especially food and meat, hit 10-year highs last month, the central government is treating inflation as the biggest obstacle to sound development.

"We won't tolerate any price manipulation and irregularities," said Zhang.

Zhang did not forecast when the rising pork and other meat prices could be brought down to normal levels. They are widely expected to be reined within this year.

But meat demand will go up as weather gets cooler, students go back to campus and festivals and celebrations such as Mid-Autumn Festival and National Day holiday approach.
 

Editor: Yan