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National Development and Reform Commission: There is greater pressure on fertilizer prices to rise----------------------------------------------------------------------------- [Author: Anonymous reposted from: Number of hits on China Agricultural Materials Network: 97 article entry: 】Recommended The relevant person in charge of the National Development and Reform Commission recently stated that due to rising costs, there is currently greater pressure to increase the price of fertilizers. For example, 90% of sulfur used in phosphate fertilizer production in my country is imported. The CIF import price at the beginning of last year was US$73 per ton. It has now risen to US$535, an increase of 6.3 times. This alone affects the production cost of diammonium phosphate by about 1,500 yuan per ton. The price of fertilizers in the international market has also risen sharply. According to reports, since the second half of last year, fertilizer prices have increased significantly. The current retail prices of urea, diammonium phosphate and three-element compound fertilizer in the domestic market are 1,955 yuan, 4,300 yuan and 2,900 yuan per ton respectively, up 10.1%, 53.5% and 61.1% respectively year-on-year. Since chemical fertilizer is an important means of agricultural production, the supply of chemical fertilizer is of great significance for organizing spring plowing production, protecting farmers' enthusiasm for growing grain, achieving a bumper harvest this year, and promoting economic development and social stability. Therefore, seven departments including the National Development and Reform Commission and the Ministry of Finance recently stated that all large urea production enterprises must strictly implement * * Price policy must not be exceeded * * Sales are subject to a specified ex-factory price ceiling. It is understood that due to the current disaster in some parts of the south, the power supply has been severely affected. Some key phosphate fertilizer companies are not producing normally and their operating rates have dropped. The output of diammonium phosphate and monoammonium phosphate in January and February has decreased compared with the same period last year. At the same time, due to rising prices and tight resources, some operating companies are waiting and waiting. Last winter and this spring, fertilizer distribution companies reduced their fertilizer preparations, and the inventory of high-concentration phosphate fertilizers in the northern region was obviously insufficient. However, the person in charge of the National Development and Reform Commission believes that in 2008, my country will add 2 million tons of nitrogen fertilizer production capacity and 1.8 million tons of phosphate fertilizer production capacity, and the total annual fertilizer output will increase by about 10% over the previous year. The output of the two main varieties of urea and diammonium phosphate will exceed domestic demand by about 5 million tons and 1.5 million tons respectively. It is estimated that my country's demand for chemical fertilizers during the spring plowing period this year will be 26.6 million tons, and the available resources will be 27.2 million tons. The total amount can meet the needs of spring plowing production. In order to increase the supply of fertilizers, relevant departments have adopted a series of incentive measures. For example, exempting imported and domestic diammonium phosphate from value-added tax to support fertilizer production ； * * The tariff policy was adjusted twice to control the export of urea, diammonium phosphate and monoammonium phosphate, phosphorus-containing compound fertilizers, and sulfuric acid. ； * * We will continue to implement price concessions for electricity and gas used by fertilizer companies, and continue to implement freight rate concessions for railway transportation of fertilizers. The person in charge of the National Development and Reform Commission emphasized that although the prices of coal and imported sulfur have increased, urea production companies still have room for profit, and the production of phosphate fertilizer and phosphate compound fertilizer is also profitable at the current market price. Therefore, all parties have the conditions to maintain price stability to ensure spring plowing production.