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Tianshui: High prices and low supply in the fertilizer market strain farmers and dealers alike. China Fertilizer Network. 2008-3-4 8:18:27. Source: Website forum. [Large Medium Small] [Close] [Discuss]. Keywords: Fertilizer market. It’s spring sowing time once again. However, unlike in previous years, the sharp fluctuations in product prices in the agricultural inputs market have posed significant difficulties for farmers. Faced with farmland ready for plowing, farmers are unsure how to cope with and bear the high prices of agricultural inputs. ““It’s difficult to grow crops this year; even before the planting season arrives, the price of fertilizers has already risen significantly. What should be done?” During the Spring Festival, while visiting relatives in the towns and villages in the southern part of Qinzhou District, the reporter heard locals gathering together to discuss the impact of rising fertilizer prices on the spring planting activities that will begin after the festival. In fact, urea, which serves as the main fertilizer for agriculture, has seen its price continue to rise since last November, driven by tightening supply conditions in the international market. At present, the urea that is in high demand as part of the first wave is mainly used for applying to seedlings of winter wheat that are regrowing. However, individual business owners in towns who sell fertilizers directly to farmers have limited urea stock due to their reluctance to purchase goods rashly. On February 29th, the manager of Qinzhou Agricultural Supplies Company said in an interview with reporters that the factory price of urea has now reached 1,725 yuan per ton, which is the same as the maximum price set by **. Due to the impact of transport cars and exports, the current inventory level of urea is lower compared to the same period last year. “At this time of year in previous years, the inventory of urea at Maiji Station alone exceeded 20,000 tons, but this year it is only around 5,000 tons. ”Manager Yu said. As a result, the supply and demand imbalance in the fertilizer market of our city is quite pronounced at present, with a significant shortage in the supply of fertilizer and agricultural inputs. According to the interviews, among the five counties and two districts in the city, Qinzhou District has a demand for fertilizers of around 000 tons; currently, only one-third of this demand is being met, resulting in a very large shortage of fertilizers. The main reasons for the tight supply and demand situation for urea fertilizer are as follows: last year, during the off-season, the urea fertilizer market did not see a decline in prices; on the contrary, prices continued to rise. Around October last year, the ex-plant prices of fertilizer-producing enterprises such as Lanhua and Liuhua in our province had already risen to a high of 1,725 yuan per ton. With the spring plowing season yet to arrive next year, the rise in fertilizer prices has completely disrupted the traditional fertilizer market. Faced with the exorbitant prices of agricultural inputs, some farmers said that their limited financial resources make it difficult for them to cope with these costs; the rise in fertilizer prices is the biggest concern for them this spring. In conversations with villagers in the southern towns and villages of our city, reporters learned that at present, relying solely on the cultivation of food crops is far from enough to offset the burden caused by rising prices of agricultural inputs; agricultural expenses still need to be covered through crop production or income from labor work. A farmer surnamed Du from Qishou Township in Qinzhou District told reporters that the price of chemical fertilizers keeps rising year after year, which has offset the benefits of the abolition of agricultural taxes. The most worrying thing after the New Year is to hear that the prices of chemical fertilizers, seeds, and plastic mulch have all increased. Well, isn’t this a problem that’s causing headaches now? If prices keep rising like this, it will become increasingly difficult to cultivate land. In fact, it’s not just farmers who need agricultural inputs who are in trouble. Similarly, dealers who supply agricultural products also face many difficulties. “During the same period last year, the arrival price of diamines was quite high, at 2,580 yuan per ton; this year it has surged to a high of 4,200 yuan per ton. “Think about it – who would still rush to make purchases these days?” said an agricultural supplies dealer. According to interviews by journalists, the market prices of minor fertilizers such as ammonium carbonate and phosphate fertilizers, which play a secondary role in the fertilizer market, have also risen sharply. It turns out that carbon ammonium, which used to cost 460 yuan per ton, now has an entry price of 540 yuan per ton. The arrival price of phosphate fertilizers produced in Yunnan has risen from 450 yuan per ton last year to 80 yuan per ton. “The price of diamines has reached record highs; with such high prices, it becomes a problem as to how to purchase them and how to sell them. ”The aforementioned operator said. Fertilizer prices are rising, and plastic mulch, which is essential for spring plowing, is also seeing a significant increase in price. The manager of Qinzhou Agricultural Supplies Company told reporters that last year the price of plastic film was 11,800 yuan per ton, and it has now risen to 14,500 yuan per ton. The sharp rise in the prices of agricultural inputs such as fertilizers for spring plowing means that suppliers of these products do not have sufficient funds to make large-scale purchases. At the same time, unpredictable market changes also make them difficult to forecast. They are afraid that if they purchase at high prices and the market conditions change, it will result in losses for them. This has led to unique supply and demand patterns in this year’s agricultural supplies market: a climate of hesitation prevails, putting farmers and suppliers in a difficult situation. Why are the prices of agricultural supplies so high? Manager Yu, the head of Qinzhou Agricultural Supplies Company, said that rising production costs for fertilizers are directly responsible for the continuous increase in their prices. Since last year, the rising prices of energy sources such as coal, electricity, and gas used in fertilizer production have increased the production costs for fertilizer manufacturers. Diamines have reached record highs, primarily due to rising costs in sulfur production; only a small amount of sulfur is produced domestically, with 70% of the demand being met through imports. While the price was 900 yuan per ton last year, it has now risen to 400 yuan per ton this year. For another example, the sulfuric acid used in the production of phosphate fertilizers cost 600 yuan per ton last year; according to information from Yunnan this year, its price ranges between 100 yuan per ton and 1,400 yuan per ton. At the same time, driven by the increased demand for grain resulting from alternative energy sources such as fuel ethanol, rising grain prices have led to higher prices for domestic fertilizers. Furthermore, the scarcity of certain mineral resources also increases the production costs of fertilizers. The reporter learned that on the one hand, farmers complain that the prices of fertilizers are too high to afford; on the other hand, both suppliers and demanders are still waiting, in the short period leading up to the large-scale spring plowing and use of agricultural inputs, and keeping an eye on any developments in the agricultural inputs market. Under the influence of **policies set at the higher levels regarding the market for agricultural inputs used in spring plowing, the price of urea in our city has not exceeded the upper limit set by those policies. Its ex-factory price remains at 15% above the benchmark price of 1,500 yuan per ton, That is, 1,725 yuan per ton. “It is said that after this month, the export tariff on urea will be raised to 5%; this adjustment is aimed at curbing exports and ensuring an adequate supply in the domestic fertilizer market. ”said a person in charge of an agricultural supplies company. “There are certain uncertainties in the market, and a cautious attitude persists. ”According to the reporter’s understanding, the provisional tariff rates for the import and export of these agricultural products are divided into three different levels depending on the season: a 0% provisional tariff applies to urea from January to March; a 5% provisional tariff applies from April 1st to September 30th; and a 25% provisional tariff applies from October 1st to December 1st. Seeing the frequent introduction of policies to control the prices of fertilizers and agricultural supplies, farmers are worried that the prices might drop after they make their purchases, resulting in losses for them; as a result, they tend to wait and see, deciding not to buy fertilizers until the last moment. Sowing seeds while purchasing fertilizers has become the common mindset among those who need agricultural supplies. (Danlan) (Author: Danlan; Editor in charge: Chunyu)