With the accelerating process of marketization, fertilizer preferential policies also change. In recent years, the rapid development of chemical fertilizer industry, "excess capacity" gradually replaced "short", become the main theme of the chemical fertilizer market. Face new situation, product attribute re positioning of chemical fertilizer, gradually through reduced compared with other products preferential space to accelerate the reform of chemical fertilizer industry market.

Market reform policy of preferential chemical fertilizer

The pace of market-oriented started from the price of fertilizer. In 2005 July, the national development and Reform Commission promulgated the "reform and improve the fertilizer price regulation mechanism of plan (Draft)" was put forward clearly, should adhere to the orientation of market reforms, the full liberalization of fertilizer prices. By the end of 2008, executive meeting of the State Council determined the "fertilizer reform of country of six", for the establishment of a market leading fertilizer price formation mechanism has become the direction of reform.

In the price of fertilizer market at the same time, the state still retains many preferential policies to ensure the stability of the development of chemical fertilizer industry. The fertilizer industry to enjoy more preferential policies, such as preferential tariff, preferential gas prices, coal prices, transport restrictions limit the preferential price of fertilizer and fertilizer products price subsidy policy, different extent to reduce the cost of production and sale of chemical fertilizer enterprises. Beginning in 2009, a series of measures by the state import and export control, the off-season reserves, improve the comprehensive agricultural subsidies, raise the minimum grain purchase prices, and promote the rapid development of chemical fertilizer production and circulation industry.

However, along with our country economy level gradually, natural gas, electric power, transportation and other fertilizer can enjoy preferential industry, also in the accelerated process of marketization. Especially the convening of the eighteen session of the third plenary session, to determine the direction of market reform, all walks of life to the market for comprehensive regulation. At the same time, in recent years the rapid development of chemical fertilizer industry, "excess capacity" gradually replaced "short", become the main theme of the chemical fertilizer market. Face new situation, product attribute re positioning of chemical fertilizer, gradually through reduced compared with other products preferential space to accelerate the reform of chemical fertilizer industry market.

Fertilizer enterprises and a positive view of the cost increase

Journalists in the survey of enterprises is how to treat the fertilizer preferential policies found gradually cancelled, because in recent years, electric power, natural gas, freight prices continued to increase, and the abolition of preferential tendency obviously, most of the chemical fertilizer enterprises of this kind of cost upward reaction insipid, is more objective understanding of influence of marketization reform for chemical fertilizer market.

Some companies see the rationality of market when analyzing this phenomenon. Jiangsu one chemical Limited by Share Ltd strategic development department minister Li Haofeng said: "in the past ten years, fertilizer preferential policies really let many fertilizer enterprises strong. But with the rapid development of chemical fertilizer industry, and currently has excess capacity, the country is now no need to provide a rich preferential conditions for fertilizer production, the market trend of the fertilizer industry is certain. From the production point of view, the fertilizer industry is just in the industry is a small branch, too many preferential policies to make fertilizer become a malformation of the chain on the market. For example, the urea production in 20% for Industry and downstream industrial products purchase urea only appear when no input tax, tax, so bring unfair policies. Only from the agricultural point of view to consider fertilizer products, value chain will be truncated industrial products. With the power of markets is more and more big, the ability of the government's visible means a natural adjustment will be more and more small."

For the cancellation of preferential policies, has played a significant role in market. Understand according to the reporter, in the railway transportation under the preferential policy, many enterprises to "injustice" Voices of discontent. It is precisely because the fertilizer transportation enjoy preferential policies, part of the railway department to choose other goods shipped priority, resulting in chemical fertilizer product shipment is not timely, the backlog of inventory. A Qinghai potash fertilizer enterprise representatives told reporters reflect, a few years ago due to enter the Qinghai wagon have been less, Qinghai potash fertilizer companies often "grab" not to the wagon, thereby limiting domestic potash fertilizer in the market sales, and after the restructuring of the railway company improves the freight after the railway departments to increase the enthusiasm of Qinghai freight, but also provides convenience for the Qinghai outward shipment. Deputy general manager of Qinghai Lianyu potash fertilizer Co. Ltd. Zhu Bin told reporters, because now Tibet into the wagon increase, reflux after Qinghai, Qinghai has also increased the supply of railway wagon. But the influence that the cancellation of preferential policies of the Zhu Bin admits, the cost of production and transportation enterprises is increased, it is bound to reflect the increase in product sales prices, but now the market decide everything, if the price of fertilizer is high, the transaction active, enterprises do not consider too many preferential policies to cancel and bring cost pressure. (and easy)