After extensive communication and negotiation with representatives from 30 major national backbone nitrogen fertilizer production and distribution companies, the China National Nitrogen Fertilizer Industry Association officially submitted a formal letter to the National Development and Reform Commission. The letter outlined five key recommendations, including "upgrading the urea ex-factory price and continuing to maintain the fertilizer support policy."
According to recent reports, the supply and demand dynamics of chemical fertilizers in China have undergone significant changes in recent years. Rising production costs, increasing pressure on companies to sell at higher prices, and new challenges arising from fertilizer market supervision and off-season reserve management have prompted the government to consider adjustments to the 2008 fertilizer policy. To ensure the policy is more scientific and practical, the National Development and Reform Commission commissioned the China Nitrogen Fertilizer Industry Association to organize a meeting on December 21–22, 2007, bringing together top executives from 30 major fertilizer companies. The goal was to gain a deeper understanding of the current market situation and collect feedback from industry leaders.
During the meeting, participants discussed various issues, including the implementation of fertilizer preferential policies, the assurance of raw material transportation capacity, the pros and cons of the off-season reserve system, the growing gap between rising production costs and fixed ex-factory price limits, and concerns about factors hindering the healthy development of the industry. After thorough analysis, the China Nitrogen Fertilizer Industry Association proposed the following five key recommendations to the National Development and Reform Commission:
First, it recommended maintaining all existing fertilizer support policies. Second, it called for measures to ensure the supply of essential production factors in 2008, such as natural gas, coal, electricity, and coal-to-fertilizer resources. Third, it suggested raising the urea ex-factory price from the current 1,500 yuan per ton to 1,600 yuan per ton, while keeping the tax rate at 15%. Fourth, it proposed improving the off-season fertilizer reserve system and increasing the responsibilities of manufacturers in this regard. Lastly, it recommended that when checking for violations of price control policies, the average annual factory price should be used as a reference, rather than the highest ex-factory price during a specific period.
These proposals aim to create a more stable and sustainable environment for the fertilizer industry, ensuring both economic viability and market stability.
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