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The new commercial reserve system for chemical fertilizers will be implemented on September 1. Author/Source: Sinochem News. Date: August 18, 2020. Page views: 19. The three existing chemical fertilizer reserve systems have been consolidated into a **commercial reserve system**. According to the **National Development and Reform Commission**, starting from September 1, China will implement the new **Administrative Measures for Commercial Reserves of Chemical Fertilizers**. This measure stipulates, respectively, the reserve scale and timing for three types of fertilizers: potash fertilizer, disaster-relief fertilizer, and spring-plowing fertilizer. Industry insiders said in interviews with reporters that this move will help ensure **food security. It also has a positive impact on stabilizing the operational efficiency of enterprises involved in fertilizer production and distribution. Additionally, raising the entry threshold for storage obligations contributes to the high-quality development of the fertilizer industry. The new Measures stipulate that **commercial reserves of chemical fertilizers are divided into three categories: potassium fertilizer reserves, disaster-relief fertilizer reserves, and spring plowing fertilizer reserves.** Potassium fertilizer is stored throughout the year, with a focus on areas that have convenient transportation or are major grain and cotton-producing regions. The storage period for disaster-relief fertilizer and spring-plowing fertilizer is half a year each. For disaster-relief fertilizer, emphasis is placed on areas prone to disasters and key grain-producing regions; for spring-plowing fertilizer, its distribution is determined based on considerations such as local agricultural fertilizer requirements and the production and transportation capacity of chemical fertilizers. All storage enterprises must be determined through a bidding process. Furthermore, the new Measures stipulate that the actually paid-in registered capital of enterprises responsible for storing spring plowing fertilizers must be no less than 50 million yuan. For consortia composed of fertilizer production and distribution enterprises, the leading enterprise within such a consortium must have an actually paid-in registered capital of no less than 100 million yuan in the previous year. Since 1998, China has successively established the “Central Reserve of Fertilizers for Disaster Relief”, the “Commercial Reserve of Fertilizers during the Off-Season”, and the “Potassium Fertilizer ** Reserve”. With changes in agricultural production and the production and sales dynamics of chemical fertilizers, several problems have gradually emerged, such as high administrative and operating costs for chemical fertilizers and an imperfect mechanism for adjusting reserve levels. To address these issues, the newly released measures on fertilizer reserves integrate these three types of fertilizer reserves into a single **commercial fertilizer reserve**, thereby ensuring **food security**. Xia Yingbiao, honorary chairman of the Anhui Provincial Chemical Industry Association and honorary president of the Anhui Provincial Association for Agricultural, Rural and Farmer Information Services, told reporters that this year marks the conclusion of the 13th Five-Year Plan period and the beginning of the formulation of the 14th Five-Year Plan. In the face of the COVID-19 pandemic, widespread floods across the country, and the current severe and complex economic situation, the introduction of the “Measures” holds great strategic significance. “**The previously separate three types of reserves have been consolidated into **commercial fertilizer reserves**. This measure is more standardized, detailed, and efficient than previous ones; it plays a crucial role in promoting the stable development of agriculture in China and ensuring food security, essentially serving as a ‘reservoir’. To ensure the implementation of this system, I suggest that, first, we should further strengthen the review of enterprises’ eligibility criteria for application. Second, central and local authorities must collaborate to enhance supervision and evaluation during and after implementation, so as to ensure that this important policy keeps pace with the times. ”Xia Yingbiao emphasized. Wang Xiaofeng, President of the China Inorganic Salt Industry Association, said that the implementation of the new reserve system can, at a macro level, help stabilize China’s fertilizer supply and market prices, thereby ensuring national food security. From a micro perspective, it helps ensure the economic benefits of enterprises involved in the production and distribution of chemical fertilizers. More importantly, the Measures also help to safeguard the interests of potash fertilizer producers. Chen Guofu, vice president of the China Inorganic Salt Industry Association, emphasized that **fertilizer reserves primarily rely on imports. This adjustment allocates a certain share to domestically produced potash fertilizer; it serves as an important indicator for optimizing fertilizer reserve resources and facilitates the rational allocation of both domestic and foreign resources.** In addition, the new Measures have established a fertilizer reserve system that is more comprehensive in functionality, scientific and standardized, and efficient in operation. This system is of great significance for ensuring the domestic supply of potash fertilizers, mitigating risks in the fertilizer market, reducing the impact of disasters on agricultural production, and promoting the stable development of China’s agriculture. The head of a fertilizer company in Sichuan said that under the current special circumstances, **food security must be ensured.** The introduction of these Measures can ensure a more rational allocation of resources and more standardized management. It will facilitate the further integration of fertilizer resources, which is highly beneficial for both legitimate large-scale fertilizer producers and trading enterprises. It is hoped that this favorable policy will be effectively implemented.