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Why has the potassium dihydrogen phosphate market remained sluggish for so long?

2011-07-24View Original

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Why Has the Potassium Dihydrogen Phosphate Market Remained Weak for So Long? According to Sinochem New Network, potassium dihydrogen phosphate is known as the \"premium fertilizer\" – it is a highly effective phosphorus-potassium compound fertilizer. It not only boosts yields significantly but is also non-toxic, harmless, and leaves no residues. The nutrients in its aqueous solution can be 100% absorbed and utilized by plants, making it fit the concept of a green fertilizer. However, the market for potassium dihydrogen phosphate has remained sluggish for a long time. So, given the reality of a general lack of phosphorus and potassium in China’s arable land, what factors are preventing their widespread use?     Poor promotion by authorities turns high-efficiency fertilizers into useless items. When it comes to potassium dihydrogen phosphate, almost everyone – whether they are agricultural experts, fertilizer dealers, or ordinary farmers at the grassroots level – speaks highly of it. However, for a long time, the promotion and use of potassium dihydrogen phosphate have not received the same level of attention as the promotion of soil testing for fertilization and controlled-release fertilization; nor have there been any implementation plans or financial support from higher-level regulatory authorities. It is precisely the lack of relevant planning and thorough promotion by authoritative agencies that has prevented it from receiving adequate attention in the agricultural sector.     Potassium dihydrogen phosphate lacks a demonstrative effect in major grain-producing areas. A few years ago, Jiaozuo University in Henan Province conducted an experiment in a test field involving the targeted application of potassium dihydrogen phosphate at a concentration more than 10 times higher than the normal level; 4 kilograms of potassium dihydrogen phosphate were used per mu. As a result, wheat yields reached 705.6 kilograms per mu, representing an average increase of over 15% in yield. Moreover, the cost was only one-fourth that of urea, resulting in a very high cost-benefit ratio. However, due to various reasons, the results of these model field experiments and their demonstration effects were not widely adopted in domestic agriculture.     The poor promotion of potassium dihydrogen phosphate is also related to the agricultural inputs distribution sector. During the interviews, reporters learned that local agricultural supplies distributors are not very enthusiastic about promoting potassium dihydrogen phosphate, mainly because of the small scale of their operations – each unit of product requires a large amount of capital and results in low profits. Clearly, the lack of interest in the main channels for agricultural supplies is bound to hinder the development and expansion of their market.     Due to high production costs associated with scale, development is hindered. At present, the production of potassium dihydrogen phosphate is widespread in China; manufacturers can be found in provinces such as Jiangsu, Henan, Hubei, Anhui, Shandong, Sichuan, Guangdong, and Hunan. However, the scale of production is generally small, with few facilities capable of producing tens of thousands of tons. Currently, the total national production capacity is over 1 million tons, while the annual output is only in the hundreds of thousands of tons. Compared to the domestic urea production capacity of over 60 million tons, this clearly reflects the sluggish state of production and sales.     Potassium dihydrogen phosphate belongs to the phosphate industry, and many manufacturers treat it merely as an ordinary product. To date, there are no specialized large-scale manufacturers in this industry; the lack of leading enterprises to drive development means that brand strategies and their influence simply cannot be established. As a result, the production and demand for potassium dihydrogen phosphate remain stagnant for a long time.     At the same time, in recent years, as the prices of raw materials such as yellow phosphorus, caustic soda, potassium hydroxide, and potassium chloride have risen sharply, the manufacturing cost of potassium dihydrogen phosphate has also increased. The consequent price hikes by manufacturers have reduced farmers’ willingness to purchase it. At the same time, it still applies a VAT rate of 13%, which further reduces businesses’ enthusiasm for operating.     Counterfeited and substandard products are rampant; the honest can’t compete with the dishonest. The issue of counterfeits has also caused potassium dihydrogen phosphate to lose part of its market in rural areas: firstly, farmers lack the ability to distinguish between genuine and fake products; secondly, those who produce and sell fakes become increasingly cunning in deceiving farmers; thirdly, supervision and enforcement measures that rely on fines rather than strict controls are not sufficient to deter illegal manufacturers. Clearly, counterfeit and substandard products pose the greatest threat to the agricultural supplies market; therefore, it is urgent to restore order in this market.     In fact, the Standards Committee issued standards for potassium dihydrogen phosphate as early as the early 1980s, with revisions made in 1992. It should ideally become a standard type of fertilizer. However, in an effort to reduce costs, some manufacturers incorporate inexpensive materials such as ammonium carbonate and ammonium phosphate into the production process, altering the active ingredients of potassium dihydrogen phosphate; yet they still sell these products at low prices under that name, thereby causing disruption in market prices. As a result, it is inevitable that some farmers will be confused and gradually lose interest in using potassium dihydrogen phosphate.     At the same time, fake and substandard potassium dihydrogen phosphate has reached alarming levels in some areas nowadays. Fakers and counterfeiters will stop at nothing to reduce production costs; some purchase small amounts of potassium dihydrogen phosphate from legitimate manufacturers, then mix in large quantities of inexpensive substances such as sodium sulfate and industrial waste salts, and imitate the packaging of legitimate manufacturers before selling the products in bulk at low prices to rural retailers. Some counterfeit sellers use promotional tactics such as rewards for purchasing fertilizer to lure many farmers who are unaware of the truth to rush and buy. With fake products rampant, some of the deceived farmers said goodbye to potassium dihydrogen phosphate.     In summary, potassium dihydrogen phosphate offers a good cost-performance ratio, and its market potential is extremely large in the long term. However, this requires not only strong support from decision-makers but also joint efforts from sectors such as production, distribution, and agricultural technology to develop the market and guide consumption, so that it can play its proper role in China’s transition to modern agriculture. Otherwise, it will not only result in losses for agriculture and farmers, but also **losses.

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