Four Measures to Stabilize Fertilizer Prices - Reports from Spring Plowing in Xinjiang

On April 8, strong cold air in Siberia affected Xinjiang, and frost, dust storms, and sand-blown weather in different degrees in southern Xinjiang had a great impact on the production of spring plowing. The Agriculture Department of the autonomous region issued information in advance and took corresponding measures to minimize disaster losses.

In the interview, the reporter learned that farmers in Xinjiang are very concerned about fertilizer prices. “What we are most worried about now is whether chemical fertilizers and pesticides will keep going up. Now that the spring plowing in Xinjiang has not yet begun, if you spend so much money on chemical fertilizers in the past, what can you do after the fall?” said Banfanggou Township, Urumqi County. The farmers are still worried about the price of fertilizers and pesticides.

Urumqi County is a major agriculture and animal husbandry county in Xinjiang Autonomous Region. The farmers in the Banfanggou Township are very concerned. Although the spring plowing in northern Xinjiang is about half a month later than inland, the farmers’ market for this year's agricultural capital market has long since been reported. Started to pay attention. Farmers are concerned and government departments are more concerned. The reporter learned from the Xinjiang Autonomous Region Development and Reform Commission and the Department of Agriculture that they have already made arrangements for the supply of agricultural production materials, especially for the price stabilization. According to the arrangements of the People’s Government of the Autonomous Region, the National Development and Reform Commission and the Department of Agriculture have taken some new initiatives this spring to protect the interests of farmers and stabilize farmers’ planting costs. A person in charge of the Development and Reform Commission of the Autonomous Region told the reporter that Xinjiang now produces nearly 2 million tons of urea every year. Apart from meeting the needs of Xinjiang's agricultural production, it can also call out a portion, so there is no problem with the supply of nitrogen fertilizer. The key is price control. In this regard, we will take four measures this year to curb the rise in fertilizer prices, stabilize fertilizer prices, and prevent high-priced fertilizers from infringing the interests of farmers. The four measures are:

Firstly, the ceiling price for chemical fertilizers continues to be imposed. Based on the price limit last year, all nitrogen fertilizer production enterprises in Xinjiang this year have stipulated that, regardless of the affiliation, the highest ex-factory price per ton of urea shall not exceed 1,725 ​​yuan. In circulation, from factory to sales to farmers, the overall operating rate must not exceed 7%, and direct transportation and miscellaneous expenses should be added on this basis. At the same time, it also stipulates that all chemical fertilizer production enterprises will directly implement the sales of chemical fertilizers through the sales company of this system, and the ex-factory price will be enforced. 7% of the comprehensive operating margin of circulation companies includes bank loan interest, management fees, storage fees and other expenses incurred in the circulation.

Secondly, relevant departments and several large-scale fertilizer manufacturers have reached a consensus to implement a publicity system for fertilizer prices. This publicity does not tell everyone about the new fertilizer prices, but instead puts CNPC Urumqi Chemical Sales Company and CNPC Tarim Oilfield Branch Southwest of Tazhong. Fertilizers produced by companies such as chemical fertilizer plants and Xinjiang Xinhua Chemical Fertilizer Co., Ltd. are published at the sales outlets from the ex-factory price to the retail price, so as to facilitate farmers' understanding and supervision.

Third, encourage fertilizer manufacturers to extend their sales outlets to rural areas and implement large-scale direct supply. One of the main reasons for the high price of fertilizers last year was excessive circulation. This measure can reduce circulation and reduce circulation costs. China Petroleum Urumqi Chemical Sales Company will directly supply fertilizer to 300 to 500 large planting farmers this year, and gradually promote it, allowing more farmers to truly enjoy the benefits of agricultural policies.

Fourthly, the fertilizer production enterprises will test the soil for free during the period of spring ploughing to determine the type and amount of fertilizer required, provide guidance and consultation services for the farmers' scientific fertilization, in order to reduce the inefficient consumption of fertilizers and reduce the production costs of farmers.

The person in charge said that at present, the fertilizer reserves of the autonomous region can fully guarantee the need for spring plowing. In addition, we must also adhere to the principle of “giving priority to the region and beyond the region” to strengthen the management of Sinotrans Xinjiang’s agricultural production and compress the fertilizer out of Xinjiang.

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