China_Fertilizer_Market.htm

The Immediate Market Opportunity for organic compound fertilizers.

 “China will ban the application of five high toxicity agro chemicals inclusive of methamidophos and monocrotophos, accounting for 1/4 of the domestic gross agrochemical production, to achieve safety agro produce supplies for the people.

Random checking by the state general bureau of quality inspection to vegetables on wholesale markets in 23 cities tested countrywide indicated that 47.5 per cent did not meet the state agrochemical residue standard.

Even some high toxicity types such as of methamidophos, thimet and omethoate have been found on the market vegetables during the recent years regular spotcheckings by the authority departments.

The absence of low toxicity types of fertilizers with high efficiency in China is most serious. The usual agro chemicals employed worldwide are not widely represented, with less than two hundred varieties being produced in China, where most of the mass-produced types fall into the high toxicity category including four already internationally banned types of methamidophos, monocrotophos, parathion and methyl parathion, accounting for over 1/4 of China's domestic production.

The ministry of agriculture will no more offer approvals for examinations and registrations of high toxicity agrochemicals to vegetables, fruits and teas and put application limitations on edible sugarcanes, corns and Chinese medicinal herbs.

Meanwhile, the five high toxicity fertilizers currently covering 1/4 of the domestic production will be gradually phased out of application.”

(Source: January 2002 China Agrochemicals Information Center)

“China’s domestic fertilizer production can only supply 70-80% of total demand.  China will need to import an estimated 10 million tons of fertilizer each year.  Agrochemicals are important materials for agricultural production and the government continues to control local production, importing, exporting, and distribution.

Based on applications from local planning commissions and other ministries such as the Ministry of Agriculture, Ministry of Chemical Industry and Ministry of Internal Trade, the State Planning Commission works out the annual import quota for agrochemicals.  Then MOFTEC’s Quota and Licences Administrative Bureau checks and allocates quotas and licences to local importers.

Governmental policy is a pivotal factor affecting the amount of fertilizer imported.  In recent years, to meet the local market demand, China adopted a preferential tax policy that waived value-added taxes on imported fertilizers.  In 1995 and 1996,China was oversupplied with fertilizer by imports. In 1995, China imported 19.91 million tons, oversupplying demand by 8.5 million tons.  In 1996, China imported fertilizer totalling over 18 million tons, oversupplying demand by 5.4 million tons. The oversupplying of fertilizers negatively influenced local production.  In response, the State Planning Commission decided to restrict fertilizer imports by setting an import quota of 2 million tons of urea, cancelling the preferential import tax policy, and imposing 3% import duties from the beginning of this year.  Total imports of fertilizer this year are expected to decrease around 30% from last year.  China is likely to cap imported fertilizers to around 10 million tons per year for the coming years.”

(Source: Dec 2001 Strategis [Export Canada] & US Department of Commerce)