Individuals and companies distributing misleading or false information about commodity price hikes will be fined up to 2 million yuan ($295,000), said the National Development and Reform Commission (NDRC), China's top economic planner.

The suggested punishment measures to combat commodity hoarding and forced price increases are open to public debate until August 13, after which it will be submitted to top officials for a legislative reading, the NDRC said.

Hoarding was mainly to blame for skyrocketing prices of garlic, mung beans and other farm products this year, jeopardizing the government's goal to keep the annual consumer price index growth at 3 percent in 2010.