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At a press conference held not long ago by the State Council Information Office, Chen Xiwen, Deputy Director of the Office of the Central Financial and Economic Affairs Leading Group and Director of the Office of the Central Rural Work Leading Group, provided an overview of the current policies regarding agriculture and rural areas as well as efforts to strengthen agricultural infrastructure, and answered journalists’ questions. In answering questions from our newspaper’s reporters, Chen Xiwen stated that fertilizer manufacturers need to properly address **the adjustments to export tariffs on fertilizers as well as the price control policies in the domestic market. Recently, the prices of the main raw materials used in the domestic production of fertilizers, such as oil, electricity, coal, transportation services, and gas, have been rising continuously. In 2007, international market fertilizer supplies were tight, and prices for such fertilizers remained high. China’s urea exports exceeded 5 million tons, reaching a record high. Recently, the **General Administration of Customs announced that, from January 1 to December 31, 2008, the export tax rates on products such as urea, diammonium hydrogen phosphate, ammonium dihydrogen phosphate, and sulfuric acid would be increased. Meanwhile, in January, the **National Development and Reform Commission, together with the China Nitrogen Fertilizer Industry Association and the China Phosphorus Fertilizer Industry Association, held meetings in Beijing to emphasize the need for strict compliance with fertilizer price policies. These meetings served as a reminder to fertilizer manufacturers to earnestly implement such policies in order to maintain stability in fertilizer market prices, and to assume their social responsibility in ensuring price stability and the stability of agricultural production. Chen Xiwen pointed out that fertilizers are direct derivatives of energy sources such as oil, electricity, coal, and gas, and their costs are most directly affected by shortages in energy supply. Since 2006, central government funding for agriculture, rural areas, and farmers has increased by a significant margin. In 2006, the central government’s total investment in agriculture, rural areas, and farmers was 339.7 billion. In 2007, the central government’s budget allocation for agriculture, rural areas, and farmers was 391.7 billion. However, taking into account the various needs of rural reform and development as well as the actual financial resources available, in 2007 the central government’s investment in agriculture, rural areas, and farmers exceeded the budget by more than 30 billion yuan. Therefore, in 2007, central government funding for agriculture, rural areas, and farmers increased by over 80 billion yuan, making it likely the year with the largest increase in such funding in history. The budget allocated by the central government in 2008 for matters related to agriculture, rural areas, and farmers is still pending approval by the National People’s Congress. However, as far as I know, the increase in 2008 will be greater than that in 2007, possibly exceeding 100 billion yuan. The central and local governments have increased investment in agriculture, rural areas, and farmers for several consecutive years; in other words, this is aimed at enhancing farmers’ ability to cope with rising prices of production inputs such as fertilizers, pesticides, agricultural plastic films, and farming machinery. In 2007, international market supplies of fertilizers were tight, and their prices remained high. China’s urea exports exceeded 5 million tons, reaching a record high. **The General Administration of Customs has introduced policies to raise the export tax rates on products such as urea, diammonium hydrogen phosphate, ammonium dihydrogen phosphate, and sulfuric acid. Its purpose is to prevent high-energy-consuming resource-based products from entering the international market at low prices, thereby ensuring an adequate supply of fertilizers for domestic agricultural production. Regarding why the **National Development and Reform Commission, together with the Chinese Fertilizer and Phosphate Associations, held a meeting to emphasize the need for strict compliance with fertilizer price policies**, urging fertilizer manufacturers to adhere to these policies in order to maintain stability in fertilizer market prices and to assume their social responsibility for keeping prices and agricultural production stable, Chen Xiwen said that **requiring fertilizer manufacturers to strictly follow these price policies does not mean that they are not allowed to raise prices**. However, any price increase must be approved by the **relevant authorities; hearings and evaluations are required, and the timing as well as the extent of the price increase should all be subject to **regulation and control. **Unauthorized, excessive, or arbitrary price increases are strictly prohibited.