The reporter learned yesterday from the China Petroleum and Chemical Industry Association that current chemical fertilizer manufacturers are well-stocked and actively ramping up production. Combined with the nation's 7.7 million tons of off-season reserves, this year’s domestic supply of fertilizers and pesticides is expected to fully meet market demand.
According to an official from the association, with the complete abolition of agricultural taxes and the government’s ongoing efforts to regulate land use, the total planting area in agriculture is anticipated to grow in 2006, leading to increased demand for fertilizers. However, improved farming practices, such as rationalized fertilization and the use of compound fertilizers, are expected to limit the overall growth in fertilizer usage. While nitrogen fertilizer demand will rise at a slower pace, phosphate and potash fertilizer consumption is projected to increase more rapidly. The Ministry of Agriculture estimates that chemical fertilizer consumption in 2006 will reach about 58 million tons, with approximately 300,000 tons of pesticides required.
On the supply side, several major projects have come online, including Sinopec’s Baling, Anqing, and Jinling coal-to-oil facilities, as well as the Xinjiang large-scale fertilizer project by Liaoning Huajin Group and the “1830†project by Shanxi Jincheng. Additionally, underutilized plants from 2005 are expected to boost urea production by 1.5 to 2.5 million tons in 2006. Phosphate fertilizer output is also expected to rise by 1 million tons, reaching 11.8 million tons.
With the arrival of spring plowing season, local fertilizer and pesticide producers are fully prepared. To ensure sufficient supplies for the planting season, the National Development and Reform Commission and the Ministry of Finance organized two batches of 7.7 million tons of commercial storage fertilizers through public bidding. The state provided interest subsidies to the storage companies. Due to export restrictions on urea and high tariffs, domestic fertilizer availability remains stable, even during off-peak seasons. Moreover, fertilizer producers have stockpiled large quantities in anticipation of the peak season, ensuring a reliable supply for farmers.
According to additional reports, the strong support from the national "supporting agriculture" policy has led to continued rapid growth in the production of chemical fertilizers and pesticides in 2005. Statistics show that national chemical fertilizer output reached a historical high of 41.88 million tons in 2005, a 10.7% increase compared to the previous year. This exceeded the target of 41 million tons set during the 10th Five-Year Plan by nearly 8 million tons, marking a significant milestone in the sector's development.
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