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At present, preparations for spring plowing are approaching, and the demand for chemical fertilizers continues to rise. At the critical moment when the storm is high and the waves are high, * * The National Development and Reform Commission and the Ministry of Finance jointly decided to promote fertilizer price reform and establish a market-oriented fertilizer price formation mechanism. The release of this policy has attracted a lot of attention in the industry. The promulgation of policies that enable farmers to get more benefits will help farmers get more benefits and help protect farmers' vital interests. * * The decision to liberalize fertilizer prices has been carefully considered. In recent years, direct subsidy funds to farmers have been significantly increased, the minimum purchase price of rice has been raised, and a commercial reserve system for fertilizers in the off-season has been established... all of which are paving the way for liberalizing fertilizer prices. We learned from the Hubei Provincial Comprehensive Rural Reform Office that in the past two years, both the central and provincial finances have increased significantly in investment in "agriculture, rural areas and farmers". In terms of provincial fiscal special funds related to agriculture alone, it was 10.434 billion yuan in 2006 and reached 12.208 billion yuan in 2007. In 2008, it increased significantly compared with the previous year. Today, in any village in Hubei, farmers can enjoy policies such as direct grain subsidies, subsidies for improved seeds, subsidies for returning farmland to forests, subsidies for agricultural machinery, subsidies for fertile sows, and comprehensive direct subsidies for agricultural inputs. All funds that benefit farmers are directly distributed to farmers through a "one-stop discount" method. * * With increased investment, farmers' income growth has accelerated. In 2008, the per capita net income of Hubei farmers was 4,656.38 yuan, an increase of 16.5%. This year * * The issuance of Document No. 1 is also good for fertilizer and pesticide companies. Industry insiders said that after the liberalization of fertilizer prices, companies will naturally sell more fertilizers directly to farmers because they do not worry about hitting the maximum price limit of fertilizer prices and there is no need to "play tricks" with dealers. The fewer intermediate links, the more benefits farmers will get from purchasing fertilizers. What's more, * * The impact of changes in the prices of agricultural inputs such as fertilizers and diesel and grain prices on farmers' income from growing grain will be comprehensively considered, and mechanisms will be implemented to link the increase in agricultural input prices with an increase in comprehensive subsidies for agricultural inputs and an increase in the minimum purchase price and temporary purchase and storage price of grain. Comprehensive agricultural input subsidies will only increase but not decrease to ensure that farmers' income from growing grain will not decline due to rising prices of agricultural inputs. Will prices rise or fall sharply? Will "loosening" ex-factory prices lead to a sharp rise in fertilizer prices? Most people's answer is: Won't. Relevant people admitted frankly that although fertilizer prices have been implemented before, * * Guide price, but the actual effect is not big. “As raw material prices rise, companies have to break through the price ceiling in order to protect themselves. During spring plowing last year, the maximum ex-factory price of urea was 1,725 yuan per ton, but the highest price actually sold was 2,600 yuan per ton. Sinopec Hubei Fertilizer Plant said that the company is very cautious about prices. After all, competition in the fertilizer industry is fierce. If the market doesn't buy it, companies won't dare to raise prices no matter how high they are. Analysis by the Hubei Provincial Supply and Marketing Cooperative shows that apart from normal seasonal fluctuations, it is unlikely that fertilizer prices will rise significantly this year. On the one hand, my country's total supply and demand of chemical fertilizers are basically balanced, with supply of major varieties such as nitrogen fertilizers and phosphate fertilizers exceeding demand, and domestic chemical fertilizer resources are abundant. on the other hand, * * Comprehensive measures will be taken to increase fertilizer production, strengthen market regulation and supervision, and maintain market stability. It is conducive to rebuilding confidence of enterprises. As an important means of production, my country's fertilizer price system has undergone many changes in the past 10 years. Until 2004, it was finally decided that temporary price intervention measures such as price increase declarations and margin control would be implemented for the market-regulated ex-factory prices and retail prices of fertilizers. However, in the face of market ups and downs, this semi-planned and semi-market price mechanism is somewhat unable to adapt. From the perspective of upstream and downstream relationships, the prices of major raw materials such as coal, sulfur, and phosphate rock used in fertilizer production have been fully market-oriented and change frequently. The implementation of restrictive policies on fertilizer prices is not conducive to the normal organization of production and operation activities by enterprises. Taking Hubei as an example, in October last year, due to the increase in coal, sulfur, potassium chloride and other raw materials, the cost of compound fertilizer increased by more than 1,000 yuan per ton. In addition * * Restricted price sales and substantial increases in export tariffs have led to a rapid decline in domestic fertilizer prices, with costs and selling prices inverted. Most Hubei compound fertilizer companies are in a state of semi-stop production, and the industry's losses have intensified. Industry insiders said that whether it is peak season or off-season, * * Controlling the ex-factory prices of chemical fertilizers such as urea and ammonium phosphate does not make much sense. Practice has proven that only by adjusting prices based on market supply and demand, cost changes, etc., can the optimal allocation of social resources be achieved. Reform of the price system eventually became inevitable.