November 20, the State on the anti-inflation policies to stabilize prices will fall to the introduction. The State Council issued "on the stability of the overall level of consumer prices of basic life to protect people notice" to stabilize the price 16. 22 to 26 November, the National Development and Reform Commission issued a 9 5 days notice regulation prices. In the meantime, the National Development and Reform Commission also met and coal, cotton and fertilizer industry conferences, requiring large-scale coal enterprises in coal before the end of regulation are not free; cotton prices may not blindly prices; while related to agricultural fertilizer industry, development and reform Joint Finance Committee and other relevant ministries to report a strict export restrictions. Although the regulation of the export tariffs on fertilizer policy has not yet officially introduced, but its probably around the point has been circulated in the industry. Estimated spread of the upcoming version of the policy and will not have much access.
Fertilizer is a special industry, is also a small industry, the policy has always been for a word and prosperous. From the present point of view, the policy of stable prices to the fertilizer industry to implement the head, there may be four ways.
The first is a direct limit. Excessive rigidity of the policy, introduced unlikely. If the introduction of the fertilizer industry as a whole may cause confusion.
Two years ago, the domestic part of the large enterprises have been receiving nitrogen fertilizer factory price regulation. National Development and Reform Commission in early 2009 announced the lifting of restrictions on fertilizer price policy, the price of fertilizer by the government guidance to regulated by the market. National Development and Reform Commission will no longer arbitrarily limit the price for fertilizer prices and other forms of intervention. Agricultural prices rose rapidly in the moment, if the state regulation of prices of agricultural products to the upstream extension of the policy, will limit fertilizer prices again brings up the way, this is an open question. From the current point of view, the price of fertilizer is the most direct way to control fertilizer prices, but difficult to implement is not small, but from the ex-factory fertilizer prices to wholesalers and then to the middle of retailers, many links, a link limit may not be able to control the market prices, would be delighted to live may be limited to manufacturers and allows brokers and retailers profitable, the result is not really the market price decline.
Second, strict control of chemical exports tariffs. Strong rigid policy, but also part of the strength of the fertilizer business, the regulation of certain space, the possibility of the introduction of 99% capacity on the market prices a greater role, to the industry will have a considerable impact.
The countries price stability, the most powerful for the fertilizer industry's most direct policy, it is likely that the introduction of more stringent regulation of tariff policy. Allegedly, the new tariff policy, if the FOB value of exports of fertilizer products, the higher the tax rate will gradually increase. In addition, the policy will also restrict the export window shortened fertilizer, phosphate fertilizer products and urea product by six and a half months for the six months were reduced to four months. Fertilizer industry sources, these restrictions are in effect blocking all fertilizer production capacity in China, competition in the industry forced to cut prices in order to reduce agricultural costs and inflation expectations, which will result in no small fertilizer business damage. "Because if in accordance with the adjusted benchmark price, plus customs duties, is the loss of export, the export is equal to find their own dead end." It is understood that the policy of restricting the export of fertilizer, from brewing to the formation of the final plan submitted to the State Council, took less than a month. National Development and Reform Commission and Ministry of Agriculture hopes that this can reduce the cost of agricultural products, thus weakening the future play a role in further price increases of agricultural products.
Third, keep fertilizer business benefits. Greater policy flexibility, though it is clearly relevant government departments issued a document, and has repeatedly stressed, but the implementation of different parts, but also the deteriorating trend. Preferential policies from the current view, part of the fertilizer business will be a little tonic.
The latest in a fertilizer business-oriented preferential policies, the national authorities stressed the need to ensure the production of fertilizer companies can not impose rolling blackouts. Old preferential policies also include part of the fertilizer companies to enjoy lower prices for natural gas, electricity, rail transport. Shaanxi Province, recently proposed: to urge the enterprises to protect the fertilizer production normal power and gas supply. But the province is different, it is understood that the latest proposed not to impose power cuts in the new fertilizer business policy, it is difficult to be implemented in various places. China's coal-producing Shanxi province, and coal as raw materials to produce urea is the key province. But urban residents in Shanxi Province with power consumption can not fully guarantee the supply of some cities have regular electricity blackouts limited measures in this context, it is difficult to expect the fertilizer business can enjoy the open power policy. The low price of natural gas and electricity supply, preferential railway tariffs, has also been partially implemented by Qizhebakou ground.
Fourth, agricultural subsidies to farmers. Policy can play an indirect role, but a very limited effect. The role is to ensure the maximum amount of fertilizer consumption is relatively stable.
I believe this policy has been to strengthen the next few years, the annual subsidy intensity will increase, but it basically has no direct role in the fertilizer industry. (Small s)