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The relevant person in charge of the Customs and Excise Department of the State General Administration of Customs said in an interview with reporters a few days ago that customs at all levels will strictly follow this "Notice" to restrict the export of urea and other products to control the price of spring ploughing fertilizer, ease the tension of fertilizer use, and ease farmers. Burden to ensure a stable domestic market.
According to the customs analysis, with the easing of the contradiction between the supply and demand of upstream resources such as coal and phosphate ore, and the implementation of a national policy to stabilize the price of agricultural materials, the overall supply and demand of agricultural materials this year tends to be balanced, and the price gradually falls. However, due to the strong seasonality and regional differences in the supply and demand of agricultural materials in China, in some regions during the first half of the year, there may still be tight supply and demand in some regions.
The survey conducted by the Ministry of Commerce shows that out of the 36 major agricultural products, the supply and demand balance accounted for 77.8% in the first half of this year, oversupply accounted for 18.1%, and supply was in short supply accounted for 4.1%. The balance of supply and demand for pesticides accounted for 80.8%, for oversupply accounts for 15.2%, and for supply shortages, 4.1%. The balance of supply and demand for chemical fertilizers accounted for 74.5%, supply over-supply accounted for 18.8%, and supply was in short supply accounted for 6.7%. The urea is the “leading leader†of the fertilizer market, which has a great impact on the prices of other fertilizer varieties. As the urea market has been relatively good in recent years and there are many new projects, it is expected that the country will increase its urea production capacity by about 3 million tons this year.
Customs believes that due to the country’s strict restrictions on urea exports this year, total urea exports are estimated to be between 1 million and 2 million tons this year. On the import side, although the country has an import quota of 3.3 million tons, foreign urea is hard to come in because domestic prices have a greater advantage than foreign prices. At the same time, the export situation of pesticides will be more severe, and exports will continue to show a growth trend, but the growth rate may decline. Some newly effective international conventions will restrict the export of certain pesticide species, such as the “Plan of Adopting Prior Informed Consent for Certain Hazardous Chemicals and Pesticides in International Trade†and “Limiting Certain POPs Legally Binding The international instruments, including methamidophos, parathion and monocrotophos, etc., have been exported by a large number of pesticide companies in China and are the world's leading manufacturers. From January 1 this year, the state has stipulated that the export tax rebate rates for 25 pesticides included in the two conventions should be reduced to 5%. This will have a certain impact on related companies.
On January 20, the National Development and Reform Commission and the Ministry of Finance jointly issued the “Notice on Doing a Good Job on Chemical Fertilizer Production, Supply, and Price Regulation in 2006,†which stipulates that the seasonal tentative tariffs on urea exports should continue to be imposed. From January to September, 30% will be issued. The tax rate is calculated at the rate of 15% from October to December.