China Petrochemical Federation: Do a good job in ensuring the supply and price of fertilizers and pesticides for spring ploughing in 2022

On March 9, the China Petroleum and Chemical Industry Federation issued the "Notice on the Petrochemical Industry Doing a Good Job in the 2022 Spring Farming, Fertilizer and Pesticide Supply and Price Stabilization"
.
The full text of the notice is as follows:

All relevant units:

Food security is an important cornerstone of national security
.
At the just-held National Two Sessions, the government reported that grain output this year should remain above 1.
3 trillion catties
.
The No.
1 Central Document once again proposed to "firmly hold the initiative in food security"
.
At present, it is an important period for China's grain production to prepare for spring ploughing, and agrochemical products such as fertilizers and pesticides provide important guarantees for China's grain production and harvest
.
In order to fully implement the relevant arrangements of the Party Central Committee and the State Council, and to implement the series of policies and measures issued by the relevant state ministries and commissions to ensure the supply and price of agrochemical products for spring ploughing, the China Petroleum and Chemical Industry Federation established a special leadership team headed by President Li Shousheng and Secretary Li Yunpeng.
, special research and deployment of spring ploughing, fertilizers, pesticides and other agrochemical products related to supply and price stabilization, and strive to make greater contributions on the basis of last year's supply and price stabilization
.
The 2022 spring ploughing chemical fertilizer and pesticide supply and price guarantee work is hereby notified as follows
.

I.
Deeply understand the importance of ensuring the supply and price of chemical fertilizers and pesticides

In recent years, severe food shortages have been caused worldwide due to climate change and the COVID-19 pandemic
.
According to the United Nations, a total of 720 million to 810 million people worldwide are struggling with hunger in 2020, an increase of about 160 million people compared to the previous year
.
Factors such as crop failures, export restrictions and geopolitical turmoil may all lead to high food prices, further increasing the contradiction of food shortages
.
At present, the problem of food security is more prominent, and the task of guaranteeing chemical fertilizers, pesticides and agricultural materials is even more arduous
.
The stable supply and price of agrochemical products such as fertilizers and pesticides are directly related to the vital interests of farmers.
Therefore, ensuring the stable supply and price of agrochemical products is not only of great significance to maintaining China's food security, but also to the petrochemical industry and the vast number of agrochemicals.
It is the major responsibility of enterprises to ensure the livelihood of the common people
.

2.
Make every effort to ensure the stable operation of domestic production and supply of chemical fertilizers and pesticides and market prices

Spring ploughing is an important stage of agricultural production in China every year, and it is a period when agrochemical enterprises have heavy production tasks and supply guarantee tasks
.
Since the second half of last year, the prices of bulk international raw materials such as coal and crude oil have risen sharply, and the price of international fertilizers is much higher than that of the domestic market.
Domestic agrochemical enterprises such as fertilizers and pesticides have resolutely implemented the general requirements of the state to ensure stable supply and stable prices, and firstly ensure the domestic market for agrochemical products.
The supply and price are stable, and the products are not exported or exported less, and enterprises have made a lot of sacrifices for this
.
At present, China has entered the peak season of spring ploughing and spring fertilizer use.
The first task of agrochemical product manufacturers such as chemical fertilizers and pesticides is to fully guarantee the use of fertilizers in spring.
The production and distribution enterprises of chemical fertilizers and pesticides must resolutely implement the unified deployment of the Party Central Committee and the State Council.
Fully implement the work requirements of the National Development and Reform Commission, the Ministry of Industry and Information Technology and other relevant ministries and commissions, keep abreast of the production progress information of spring ploughing in various regions of the country, reasonably adjust the product structure according to different agricultural conditions, moisture content and meteorological conditions, coordinate the deployment of product sales layout and channels, and consciously maintain market fairness Competitive environment, and make every effort to maintain the overall stability of the market prices of chemical fertilizers and pesticides in different regions, different markets and different applicable conditions in China
.
Judging from the current national production situation, the domestic supply of chemical fertilizers and pesticides is generally sufficient, and the market supply is guaranteed
.

3.
Actively implement and make full use of the policies issued by the state to ensure supply and stabilize prices

The first is to fully and conscientiously implement the "Notice of the National Development and Reform Commission and other departments to do a good job in ensuring the supply and price of domestic chemical fertilizers for a period of time in the future" (Fakai Economic and Trade (2021) No.
1351).
Under the circumstance that the annual control amount of gypsum does not increase, adjust and balance the production schedule of fertilizer use in peak season and off-season, actively coordinate production energy consumption indicators, actively coordinate the implementation of sulfur resources, actively connect railway transportation and distribution to implement preferential tariff policies, and actively deploy warehousing and logistics.
We should strengthen capital management, increase the frequency of product quality monitoring and inspection, ensure that qualified products are adequately supplied to domestic markets, and effectively ensure supply and price stability
.

The second is to comprehensively and earnestly implement the "Notice of the General Office of the National Development and Reform Commission on Doing a Good Job in the Guarantee of Coal, Electricity and Gas Supply for Fertilizer Production" (Faqiban Run [2021] No.
892), and actively cooperate with coal, electric power, Natural gas enterprises will implement resources and sign medium and long-term contracts, and actively report to local government authorities.
They will not regard fertilizer production enterprises as high-energy-consuming enterprises, nor implement orderly electricity consumption measures for chemical fertilizer production enterprises to ensure stable production and stable supply of production factors.

.

The third is to vigorously innovate new varieties of chemical fertilizers and pesticides, advocate organic fertilizers to replace chemical fertilizers, actively promote new high-efficiency fertilizers and new products such as slow-controlled slow-release fertilizers, water-soluble fertilizers, and new medicinal fertilizers, and promote scientific fertilization such as soil testing, formula fertilization, and water-fertilizer integration.
technology to improve the level of reduction and efficiency of chemical fertilizers and pesticides
.
Provide a one-stop solution of "product + service", and extend the products and services of fertilizers and pesticides from the factory to the field
.

The fourth is to actively play the role of import and export trade regulation, and create better conditions for domestic agrochemical products to ensure supply and stabilize prices
.
On the one hand, during the period of spring ploughing and preparation, strengthen the management of the enterprise itself, improve the self-discipline of the enterprise, strictly manage the export of products, and fully guarantee the supply of the domestic market
.
On the other hand, it is necessary to actively expand the import of important products such as potash fertilizer and sulfur, so as to provide better guarantee for the domestic potash fertilizer supply and phosphate fertilizer production
.
In addition, it is necessary to actively communicate and coordinate with local customs, and prepare counter-cyclical adjustment policy reserves in advance.
During the off-season of fertilizer use, on the premise of ensuring sufficient domestic off-season reserves and domestic market supply, strive for appropriate exports, which not only gives full play to production facilities Production capacity efficiency, but also ease the occupation of corporate funds, and strive to maximize benefits
.

China is a big agricultural country, and there is a huge market demand for fertilizers and pesticides in agricultural production.
It is of great significance to ensure the production and supply of chemical fertilizers and pesticides and the stability of prices, which are of great significance to the stability of agricultural production and the protection of farmers' interests
.
Industry management organizations such as China Nitrogen Fertilizer Industry Association, China Phosphate and Compound Fertilizer Industry Association, China Inorganic Salt Industry Association Potash and Potash Fertilizer Industry Branch, China Pesticide Industry Association and other industry management organizations should give full play to their industry management and coordination functions, strengthen industry self-discipline, and actively assist relevant state departments to carry out Monitor the operation of the fertilizer and pesticide market, crack down on counterfeit and shoddy products, regulate the market competition environment, etc.
, implement the national macro-control policies and industrial policies, promptly reflect the reasonable demands of the industry and enterprises, and work together to ensure the supply and price of fertilizers and pesticides for spring ploughing.
Contribute to this year's food production tasks
.

China Petroleum and Chemical Industry Federation

March 9, 2022